Graceada Partners has acquired Shaw Commerce Center, a shallow-bay industrial portfolio in Fresno, in a sale arranged by Newmark. The assets are located at 4603 N Brawley Ave and 4055-4069 W Shaw Ave, positioning the portfolio in an infill industrial corridor that continues to draw investor and occupier attention. Newmark acted on behalf of the seller, EastGroup Properties, with a capital markets team that included executive managing director Andrew Briner, associate director Aaron Banks, U.S. Capital Markets co-head Kevin Shannon, vice chairman Ken White and associate director Luke Easton.
The portfolio consists of six shallow-bay industrial buildings totaling 398,100 square feet situated on 22.6 acres. Individual buildings range from 22,500 square feet to 111,200 square feet, providing a variety of bay sizes and configurations suited to a mix of industrial users. According to Newmark, the properties are leased to 25 unique tenants, reflecting a diversified rent roll across multiple occupiers rather than concentration in a single large user.
At the time of sale, Shaw Commerce Center was reported to be 94% leased, indicating a high level of occupancy and limited near-term vacancy. In-place rents were described as approximately 13% below prevailing market levels, creating embedded mark-to-market potential as leases roll. This rent gap is a key element of the transaction thesis, offering Graceada Partners an opportunity to capture incremental income growth over time without relying on speculative supply or significant repositioning.
Newmark characterized Shaw Commerce Center as a premier shallow-bay, infill industrial portfolio within Central California, noting ongoing demand for this segment of the industrial market. The firm pointed to the portfolio’s functional design and tenant diversification as factors that resonated with investors and contributed to a competitive bidding environment. The combination of stabilized occupancy, remaining lease-up potential and below-market rents was cited as providing a compelling investment profile for buyers seeking both current income and future upside.
EastGroup Properties, a long-time owner and developer of industrial product, elected to sell the Fresno portfolio as part of a broader capital allocation strategy not detailed in the announcement. For Graceada Partners, the acquisition adds a sizable industrial holding in a Central California location with demonstrated tenant demand. While pricing and specific transaction terms were not disclosed, the sale underscores institutional and private capital interest in shallow-bay industrial complexes that pair infill locations with diversified tenancy and rent growth prospects.
