COSTA MESA, Calif. – Wood Investments Companies, Inc., a leading California commercial real estate investment and management company specializing in retail, announced today the acquisition of Kings Canyon Pavilion shopping center, a 91%-occupied, 152,354-square-foot community center anchored by 99 Cents Only Stores located in the heart of Fresno, California. The purchase price was $11.8 million, which represented a cap rate of 8.64%.
Built in 2007 on 14.33 acres, Kings Canyon Pavilion shopping center is situated at the signalized intersection of East Kings Canyon Road and South Willow Avenue at 4965 East Kings Canyon Road. Kings Canyon Road is one of the dominant streets in Fresno with major retailers such as Walmart Supercenter, Home Depot, WinCo Foods, Ross and Dollar Tree located within a quarter of a mile of Kings Canyon Pavilion shopping center. Nearly 147,000 people reside within a two-mile radius of the shopping center.
According to Greg Vujnov, Wood Investments Companies’ new chief operating officer, Kings Canyon Pavilion shopping center represented a great value-add opportunity for the company. By the close of escrow on the property, Wood Investments had secured signed leases with Raising Cane’s Chicken Fingers and Dutch Bros. to occupy two new single-tenant pad buildings. “Both tenants, who are expected to open in mid-2022, will drive significant customer visits to the center,” notes Vujnov.
Vujnov also noted that the shopping center is well-positioned for future grocery and discount clothing tenants as Wood Investments looks to expand the number of tenants at the center.
Current tenants besides 99 Cents Only Stores include O’Reilly Auto Parts, Cricket Wireless Authorized Retailer, Corina’s Taqueria restaurant, indoor family entertainment complex, No Surrender Unlimited, and Fallas Paredes.
“This site checked all of the Wood Investments’ boxes and is directly in the middle of a mature Fresno market,” Vujnov continues. “Overall, the trade area has strong essential-need tenants that have created a top-tier customer draw, strong tenant synergy and an ideal crossover shopping environment. Retail sales volumes along the Kings Canyon Road corridor are well above retail sales averages, which all combine to make Kings Canyon Pavilion shopping center an attractive location for expanding retailers.”
Wood Investments had been looking in the Fresno market for this type of opportunity for a while now. “We feel strongly that Fresno is a viable retail market with excellent growth potential,” said Vujnov. “We are excited to be members of this market and the great Central Valley of California.”
Vujnov joined Wood Investments Companies in April 2021 and brings nearly 20 years of retail real estate experience to Wood Investments, holding positions as a retailer as well as in brokerage and development, working for companies such as Lewis Retail Centers, The Irvine Company, Chipotle Mexican Grill, and a founding owner of Juice It Up.
Nick Frechou, senior vice president with Retail California based in Fresno, represented Wood Investments Companies, Inc. in the purchase. Decron Properties Corp. of Los Angeles was the seller.