Lemoore's Gateway Shopping Center goes on the auction block; opening bid $1.9 million

John Safi, the president of SAFCO Capital Corp. which owns the shopping center told The Leader that placing the property up for auction rather that selling outright, exposes the shopping center to a wider variety of buyers. He admits that the shopping center has been a tough sell since he and his company purchased it about 15 years ago.

“I tried to sell it but I just haven’t been successful,” he said. Putting it up for auction “gives more exposure to the property. There is a wider base of buyers.”

The actual auction begins on November 16 and will run at least two days, ending on Nov. 18. While Safi is hoping to get more than the $1.9 million, he says there is a reserve price that has to be met before the sale actually occurs. He declined to state what the reserve will be. “If it doesn’t reach that it won’t sell,” he said.

Owning the property has been a challenge, said Safi. It currently is only 48.6 percent leased. Large tenants currently include Family Dollar and Rent a Center as well as In Shape Health, Me N Ed’s Pizza, Check into Cash, Boost Mobile, Senior Poncho’s and United Health Center.

“We really tried to get it rented,” said Safi. He tried several brokers over the years to help enlist new businesses to Lemoore. “It’s been quite a struggle.”

He applauded the City of Lemoore for all its efforts to help. “The city has always been quite helpful,” he said.

Pioneer Square was originally built in 1978 and is currently listed as a 103,500-square foot shopping center on about a 9-acre site at the intersection of Hanford Armona Road and Lemoore Avenue. Original tenants included Thrifty’s Drug Store and Save Mart.

Safi and his group gave the shopping center a major facelift in 2010, but even that wasn’t enough to entice new tenants. Several years ago, a city effort to bring Budget Rent a Car to the site was successful, but lasted only a few years when Budget experience problems and vacated the site.

The center was listed in March of this year for about $7.9 million.