DJM Capital Buys Orange County Retail Center for $40M

Prominent retail investment firm DJM Capital has paid $500 per square foot for Gateway Center

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Retail and shopping center trades have gained momentum in Southern California over the past few weeks.

This time, prominent retail investment firm DJM Capital has paid $39.5 million, or $500 per square foot, for Gateway Center, a 79,000-square-foot shopping strip in the city of Mission Viejo in Orange County. JLL announced the deal and marketed the property for the seller, Gerrity Group.

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JLL also arranged $28.9 million in acquisition financing for DJM. Property records show KeyBank provided the three-year, floating-rate loan.

Gateway Center spans 7.35 acres at 23972-24042 Alicia Parkway. It’s leased to tenants that include Starbucks, Cold Stone Creamery, Subway, Baja Fresh, San Diego Credit Union and Saddleback Urgent Care

Property research shows more than half of the visitors at Gateway Center spend an average time of 78 minutes. More than 163,200 residents with average annual household incomes exceeding $139,460 live within a three-mile radius.

JLL’s Gleb Lvovich, Bryan Ley, Geoff Tranchina and Daniel Tyner represented Gerrity Group. JLL’s Jeff Sause and John Marshall represented DJM on the financing.

“The sale of Gateway Center represents a resurgence of investor interest in retail in general and shop space in particular,” Lvovich said. “People ultimately want to gather, socialize and support retailers in their community.”

DJM Capital has been active in Orange County retail. For example, the San Jose-based firm, along with partner Real Property Venture Capital, recently nabbed $95 million to refinance a shopping center in Orange County’s La Habra, and last spring, DJM landed a $70 million loan to recapitalize a Newport Beach mixed-use waterfront property with high-end retail tenants. 

But, perhaps the new crown jewel in the portfolio: DJM and Gaw Capital USA are currently working on a $100 million renovation of the famed Hollywood & Highland shopping center in Los Angeles.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.