The San Jose-based private equity real estate group has proposed new development plans that would demolish and replace the existing 210,000-square-foot Burlington Coat Factory near the center of the shopping center, as well as an additional surrounding 30,000 square feet of retail, with a 300-unit apartment project.
DJM, which also developed the Pacific City shopping center in Huntington Beach, is seeking approvals from the city to build the six-story structure, which will include 25,000 square feet of ground floor retail and a parking structure.
Roughly 45 of the 300 units will be designated affordable housing.
The plans come as developers look to refresh and replace outdated retail options with new mixed uses, and trails a larger renovation for Bella Terra, formerly the Huntington Beach Mall.
Bella Terra, just off the San Diego (405) Freeway on Edinger Avenue, runs nearly 1 million square feet. It ranked No. 18 among OC’s largest shopping centers by sales last year, according to Business Journal data.
“The updated retail mix will serve the daily needs of the new residential tenants while providing attractions and amenities to the larger surrounding area,” said Becky Sullivan, chief operations officer at DJM.
Bella Terra Background
DJM acquired Bella Terra in 2005 along with affiliates of General Motors Corp. for a reported $224 million.
A decade later, Prudential Real Estate Investors acquired a 75% stake in the shopping center, with DJM retaining a 25% ownership stake.
During its ownership, DJM has made renovation and tenancy changes, most notably redeveloping the center’s courtyard into an open-air hub called The Garden at Bella Terra that includes outdoor dining, a beer and wine garden and a children’s area.
Anchor tenants at Bella Terra include Costco, Whole Foods, Kohl’s, among others.
Lido Village Recapitalization
Elsewhere in the city, DJM built the 190,900-square-foot Pacific City, which opened in 2010.
In addition to the two Surf City centers, DJM owns and operates a portion of the Lido Marina Village in Newport Beach.
It recently received $45.6 million in bridge financing for the recapitalization of the 106,000-square-foot waterfront boutique retail and office property on Balboa Peninsula.
The financing was arranged by George Smith Partners’ Principal Steve Bram, Senior Vice President David Pascale and Vice President Patrick O’Donnell.
DJM bought its portion of Lido Marina Village in 2013 and has since invested in renovation and rebranding efforts, transforming underused retail, office and warehouse space into trendy retail and restaurants along the waterfront.
Affiliates of Newport Beach’s Burnham USA Equities own several properties that are also part of the waterfront retail area.
Notable restaurants at the Lido Marina Village include Zinqué and Lido Bottle Works. San Francisco-based online reseller The RealReal Inc. (Nasdaq: REAL) recently opened a 1,100-square-foot store there.
George Smith Partners was involved in initial renovation financing, first arranging funds in 2014.
“With the expiration of some legacy tenant leases, this financing allows us to put the finishing touches on the renovation, to bring more high-quality tenants to the Lido experience,” said DJM President Lindsay Parton.
