Zecca Plaza/Albertsons Anchored Ctr 1600-1800 E Historic Highway 66

Faris Lee Investments is pleased to present Zecca Plaza, a high-performing grocery-anchored neighborhood shopping center located in Gallup, New Mexico. Anchored by Albertsons, the property spans 110,660 square feet of gross leasable area on 6.38 acres and features a strong tenant mix, including Goodwill, Aaron’s, O’Reilly Auto Parts, and Walgreens (NAP). The center benefits from its strategic location along Historic Route 66 near Interstate 40, serving as the only neighborhood shopping center in the easterly portion of its trade area, which draws from a 192,000-resident expanded trade area and generates 1.6 million annual visits (source: Placer.ai).
Albertsons, a dominant grocery anchor, reported 2023 sales exceeding $600 PSF, with a recent 10-year lease extension, underscoring its commitment to the center. Other tenants further enhance the plaza’s stability, with O’Reilly Auto Parts ranked among the top-performing stores nationwide and Aaron’s, the #1 store in New Mexico, recently expanding by 7,530 square feet and extending its lease. Walgreens and Goodwill also perform at the top of their respective markets, contributing to Zecca Plaza’s consistent customer draw and tenant reliability. Together, these anchors occupy 71% of the gross leasable area, creating long-term stability and strong investor appeal.
Zecca Plaza benefits from Gallup’s role as a key economic hub in the Four Corners region of New Mexico, Arizona, Utah, and Colorado, supported by major infrastructure developments like the Gallup Energy Logistics Park, a 2,500-acre rail-served industrial hub expected to create 500 jobs, and the Gallup Navajo Nation Medical Center, a 571-acre mixed-use project. These initiatives, along with other economic drivers, enhance the region’s growth and bolster retail demand at Zecca Plaza.
Recent property improvements, including parking lot renovations and tenant upgrades, further position Zecca Plaza as a low-risk investment opportunity. The center offers an in-place yield of 7.5% with annual rent increases up to 3%, resulting in a 10-year CAGR of 3.16% and a 15.5% levered IRR, providing investors steady income growth and a hedge against inflation. Additionally, the property is priced at $166 per square foot, well below replacement cost, ensuring intrinsic value and creating high barriers to entry.
With its exceptional tenant performance, strategic location, and strong regional economic drivers, Zecca Plaza represents a rare opportunity to acquire a high-quality retail asset. Its combination of stability, long-term leases, and income growth potential makes it an attractive investment for investors seeking reliable cash flow and robust returns in a growing market.
New Mexico Broker of Record
Dan K. Frady
Lic No. 14369