The 82,788 square foot Shaw West Center is anchored by Rite Aid and includes grocery store Papaya Fresh, and clothing stores Citi Trends and TJ Maxx. It is located at the southwest corner of Shaw and West avenues. Photo via Mathews

A Fresno shopping center caught the eye of an out-of-town investor who pulled out of a multifamily investment and into retail.

The Shaw West Center sold to a private buyer for $11.068 million, according to a press release from Matthews Real Estate Investment Services, a real estate brokerage based in El Segundo who represented the buyer. Senior Associate Nabil Awada with Matthews was the agent. Shane Anderson and Bryan Cifranic of Commercial Retail Associates, Inc. represented the seller.

At the southwest corner of Shaw and West avenues, Shaw West Center is home to national and regional tenants and has 98% occupancy, according to Anderson. The 82,788 square foot center is anchored by Rite Aid and includes grocery store Papaya Fresh and clothing stores Citi Trends and TJ Maxx.

The buyer, who was not disclosed, is extremely bullish on the future growth of Fresno, said Awada. The buyer sold an apartment complex in Los Angeles and used the money to purchase the shopping center as part of a 1031 Exchange.

“My client was able to successfully exchange out of a turn-key apartment building with a [net operating income] of $165,000 and move his equity into a stabilized retail center with an NOI of $760,000,” Awada said. “This 360 percent increase in net operating income is a prime example of the valuable arbitrage opportunities that a 1031 Exchange can yield for savvy investors who are willing to consider moving their equity into other markets and across different property types.”

A 1031 Exchange allows an investor to avoid tax penalties by switching investment gains to a similar investment.

Awada had shown the buyer multiple investment opportunities before the party decided on Shaw West Center. The goal for them, according to the press release, was for more stable retail tenants and passive triple-net income.

The center had 10 offers and was only on the market a short time before the seller selected the buyer, Anderson said.

Now, the buyer is looking to lease up the remaining vacant space and continue operating with long-term relationships with the current and future tenants, said Awada.