PGIM Buys Stake in Orange County Lifestyle Center
DJM Capital Partners exits the more than 1 million-square-foot property.
DJM Capital Partners has sold its ownership interest in Bella Terra, a lifestyle center of more than 1 million square feet in Huntington Beach, Calif. PGIM Real Estate remains the sole owner of the property.
The partners had purchased the asset back in 2015 for $100 million, according to CommercialEdge data. A loan provided by Metropolitan Life Insurance Co. financed the acquisition.
Originally built in 1966 as the first enclosed mall in Orange County, Bella Terra underwent several modifications over the years. The open-air lifestyle property now includes an 880,000-square-foot retail center, a 467-unit multifamily community and an 1-acre park.
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Anchored by Kohl’s, Burlington, Barnes & Noble, Cinemark Theaters, Whole Foods and Costco, Bella Terra also features a diverse mix of regional and national tenants such as The Cheesecake Factory, Starbucks, World Market, Ulta, Old Navy and Bank of America, among others. The property was 92 percent leased at the time of closing.
In recent years, DJM pursued a strategy of attracting popular restaurants as tenants at Bella Terra, which which led to visitor traffic increase.
Orange County’s retail scene
Located at 7777 Edinger Ave., the lifestyle center is right off the intersection of Interstate 405 and Beach Boulevard. The daily car traffic amounts to more than 250,000 vehicles in that area.
In the fourth quarter of 2024, Orange County’s retail investment sales totaled $164.7 million, according to a recent CBRE report. The metro ended the year with an availability rate of 3.8 percent, reflecting a slight decrease of 0.4 percent from the previous quarter. Factors such as rising construction costs and reduced land availability contributed to a drop in new space deliveries, which fell from 3,000 square feet in Q3 to none in Q4.
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