Westridge Shopping Center 2 biens | Local commercial | À vendre | 20 194 100 € | Clive, IA

Pegasus Investments Real Estate Advisory, Inc., in conjunction with ParaSell, Inc., as exclusive advisors for the Seller, are pleased to present the rare opportunity to acquire the fee simple interest in Westridge Shopping Center — a ±175,000 square foot, 100% leased retail center strategically positioned within a prominent retail corridor of West Des Moines, Iowa. This is the first time the Property has ever been offered for sale, having been developed, owned, and operated by the same local owner for over 35 years. Offered at an attractive asking price equating to an extremely low investment basis of approximately $130 per square foot, the Property is priced well below replacement cost, creating significant potential for value-add opportunities through mark-to-market rent resets and outparcel development.
Westridge Shopping Center features a strong and diverse tenant roster, including nationally recognized anchors Kohl’s and Burlington. Other tenants include FedEx, Hallmark, David’s Bridal, Johnson Fitness, Firehouse Subs, Little Caesars, Half Price Books, and a freestanding, below-market rented Starbucks with drive-thru. Although not included in the offering, Fareway Meat & Grocery, one of the region’s most prominent grocers (120 locations in Iowa, 2nd to Hy-Vee), anchors the north end of the center, generating significant additional customer traffic and enhancing the overall desirability of the Property. Start new paragraph after this. Notably, Kohl’s and Burlington, representing more than 60% of the GLA, are currently leased at $8.00 PSF NNN annually, offering substantial upside through future mark-to-market rent adjustments or redevelopment potential. The center offers additional upside via a development-ready outparcel pad that can accommodate up to ±6,000 SF of new retail space. Further, FedEx, an original tenant in the center and paying the lowest rent ($20.37 PSF NNN) along University, occupies and anchors 40% of the street front retail lineup at the center which carries a weighted average rent of $24.07 PSF NNN, offering additional value-add potential. Historically, the Property has maintained near full occupancy, including successfully re-leasing 30% of the center during COVID years 2020-2022, and has remained fully leased since 2022 with no new vacancies following those backfills. The center offers a healthy weighted average lease term (WALT) of 5.3 years enhance the stability of cash flows, while the below-market rents, resulting from decades of local ownership, offer a compelling opportunity for future rent growth. For out of market investors, current management is open to retaining management of the property given their intimate knowledge of the property and experience as the premier management company of Des Moines.
The Des Moines metro area continues to rank among the fastest-growing regions in the Midwest, with a population exceeding 700,000 following 24.2% growth since 2010. West Des Moines has outpaced this with 31.4% population growth, supported by a robust economy anchored by the finance, insurance, technology, and healthcare sectors. With an unemployment rate of just 3.6%, Des Moines consistently ranks as one of the best U.S. cities for business, investment, and quality of life.
Des Moines offers a compelling combination of high average household incomes and a low cost of living, creating strong purchasing power that supports a resilient local economy and sustained retail demand. With median home prices hovering around$300,000 - approximately 25% below the national average - and everyday expenses well below the national average, residents benefit from greater disposable income, bolstering consumer discretionary spending. This economic stability, paired with the region’s growing population and pro-business climate, makes Des Moines an attractive market for investment in necessity-based and value-oriented retail centers.
The Property’s location along University Avenue, in the metro’s most sought-after retail corridor, provides outstanding visibility and access. It is directly across from the only Whole Foods in Iowa, anchoring the 100% leased 300,000 SF Water Tower Place Shopping Center (1.8 Million Annual Visitors – placer.ai), and near major retail destinations including Target and Home Depot (#2 in state of Iowa – placer.ai). Together, these destinations help drive millions of annual visits to the immediate trade area. Furthermore, Westridge Shopping Center is ideally positioned to benefit from the highly anticipated 60 acre redevelopment of Valley West Mall, expected to significantly enhance the area’s retail profile and economic vitality.
At the offering price, conservative underwriting projects 7.0%+ cash-on-cash returns and a 12.4% IRR over a 10-year hold, excluding the additional upside potential from outparcel development. This investment presents an exceptional opportunity to acquire a high-performing, well-located retail asset with below-market rents, proven tenant demand, and a pathway for both near-term cash flow stability and long-term value creation.