Ash Tree Square, an 80.9k sf shopping center in Fresno, was purchased by an Oakland-based private investor in a $15.8 mil ($195/sf) transaction. The property is situated on 7.47 acres at 1029-1077 East Shaw Ave, at one of the highest trafficked intersections in the trade area at East Shaw Ave and North First St. It was built in 1972 and renovated in 2018, with over $720k invested into the center since 2016.
Ash Tree Square boasts a strong 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. 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.
The property sits directly across from the Fashion Fair Mall, a new 81-room Hilton hotel development, and near the 25,000-student Fresno State University. 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. The five-mile trade area is supported by 408,000 permanent residents with more than 170,000 total daytime employees.
Alexander Moore, Sean Cox and Kevin Fryman with Hanley Investment Group Real Estate Advisors represented the seller, a private real estate management group based in Orange County. The team’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.
“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.
The adjacent 973k sf 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 noteworthy 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 Green Street, Fashion Fair Mall is the only super-regional mall within 90 miles and has more than seven million annual visitors.