Fresno's Ash Tree Square shopping center just east of Fashion Fair Mall has been purchased by an Oakland investor. Photo contributed

A Ross-anchored shopping center on one of Fresno’s busiest intersections has been sold for $15.78 million.

Located at Shaw Avenue and First Street just east of Fashion Fair Mall, Ash Tree Square totals 80,877 square feet with a tenant lineup including Ross Dress for Less, Starbucks Drive-Thru, Wing Stop, Mountain Mike’s Pizza and a “synergistic mix of national, regional and local tenants,” according to a news release from Newport Beach-based Hanley Investment Group Real Estate Advisors, which brokered the deal.

Hanley Investment Group’s Vice Presidents Alexander Moore and Sean Cox, along with Executive Vice President Kevin Fryman, represented the seller, a private real estate management group based in Orange County. The buyer was a private investor based in Oakland.

 

Ash Tree Square is situated on 7.47 acres at 1029-1077 East Shaw Avenue at one of the highest trafficked intersections in the area. Built in 1972 and renovated in 2018, Ash Tree Square has had more than $720,000 invested into the center since 2016. 

The five-mile trade area where Ash Tree Square is located is supported by 408,000 permanent residents with more than 170,000 total daytime employees, according to the release. 

Hanley Investment Group’s marketing strategy focused on the infill location of the asset, the long-term historical occupancy of the tenants, the potential to add value through leasing up the 14% remaining vacancy in a trade area with limited availability for quality junior anchor space and the ability to purchase the asset below replacement cost, according to the release.

“We generated multiple qualified offers through our aggressive marketing campaign and selected a Bay Area-based private investor who closed within 2% of the listing price and within the seller’s desired time frame,” said Moore. 

More than 70% of the tenants at Ash Tree Square have occupied the property for more than 10 years and the majority of tenants have recently extended their lease, including Ross in 2020, demonstrating strong tenant performance and consumer demand, according to the release.

Ash Tree Square is situated between two of Fresno’s main highways: Highway 41, with over 138,000 cars per day and Highway 168, which averages 90,000 cars per day. The East Shaw Avenue and North First Street intersection is one of the major retail corridors in the city of Fresno, with over 62,000 cars per day, according to the release.

“This sale is a great indication that investor demand remains strong for quality well-located Central Valley shopping centers despite the sharp rise in interest rates over the last 18 months,” said Moore.

The adjacent 973,000-square-foot Fashion Fair Mall features Apple, Macy’s, Macy’s Backstage, H&M, Forever 21, American Eagle, Sephora, Victoria’s Secret, Five Below, ULTA Beauty, and restaurant operators such as Chick-fil-A, Fleming’s Prime Steakhouse, The Cheesecake Factory, BJ’s Restaurant & Brewhouse, and Slater’s 50/50. Awarded an “A” rating by commercial real estate research firm Green Street, Fashion Fair Mall is the only super-regional mall within 90 miles and has more than seven million annual visitors.