Exclusive: Irvine Co. Locks In $290M Retail Refi
One of the nation’s biggest banks originated the loan for an open-air shopping center, according to Yardi Research Data.
Irvine Co. has secured a $290 million permanent loan from U.S. Bank to refinance The Market Place, a 705,000-square-foot retail center in Tustin, Calif., according to Yardi Research Data.
Located at 2961 El Camino Real, the open-air shopping center was completed in 1988 and comprises 22 buildings over 165 acres. It is part of a large master-planned development in Tustin and Irvine that features retail, dining and entertainment options along with offices and apartments.
An opening ceremony for the revamped community lawn and plaza at The Market Place is planned for Saturday afternoon. Two apartment communities—Colonnade at the Market Place and Meridian at The Market Place—are expected to open this fall, with preleasing underway. The multifamily properties are designed for those, particularly young professionals, who want a live-work-play environment and work at nearby medical and office campuses.
Since its opening, The Market Place has become a top open-air shopping and dining destination, drawing millions of visitors to the center which features top lifestyle brands and nearly 50 eateries.
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The Irvine Co. engaged with residents and shoppers for input on the community lawn and plaza design. The newly reimagined half-acre space is located near the Regal Edwards Market Place theater, fountain and restaurants. Plans call for hosting pop-up shops, culinary experiences and seasonal celebrations in the revamped space. Eateries and other favorites like Mendocino Farms, BLK Dot Coffee, Handel’s Homemade Ice Cream and a new full-service restaurant will have locations next to the community gathering area. The Corner Bakery and a new Shake Shack have opened nearby.
Other food and beverage offerings at The Market Place include Starbucks, California Pizza Kitchen, Taco Bell, El Pollo Loco, In-N-Out Burger, I Can Barbecue Korean Grill, Dairy Queen, Nekter Juice Bar, Flame Broiler, Hopdoddy Burger Bar, Pacific Catch and Snooze Eatery.
The Market Place has personal service tenants such as Sola Salons, Andy Lam Hair Studio, Made Man Salon and Skin Technics. Health and wellness offerings include Market Place Dentistry, Tustin Market Place Optometry, Orangetheory Fitness and CorePower Yoga.
Retailers include Dick’s Sporting Goods, PetSmart, The Home Depot, Bath & Body Works, Lane Bryant, Carter’s, Ross Dress for Less, Boot Barn, FH Home, Old Navy, T.J. Maxx, REI, Vans, Best Buy, Ethan Allen and Sephora. The center also has a Sprouts Farmers Market and more than 87,500 square feet of office space, according to Yardi Research Data.
Irvine retail center refinanced
The Market Place isn’t the only retail property the Irvine Co. has refinanced in recent months. The company obtained a $70 million loan from City National Bank to refinance Northpark Plaza, a 125,642-square-foot, 15-acre, five-building retail center in Irvine in late spring, according to Yardi Research Data. Also located in the Central Orange County submarket, the 3931 Irvine Blvd. property came online in 2002. The anchor is a 52,120-square-foot H Mart store that opened in 2023. Other tenants include CVS Pharmacy, AT&T, Subway, Starbucks, Chipotle Mexican Grill and MooMoo Hot Pot.
OC retail market remains tight
The retail market in Orange County is described as red-hot by Matthews, a privately held real estate firm. The company’s second-quarter market report for the county notes that it consistently outperforms national benchmarks and has high tenant retention.
With just about 217,000 square feet of new construction underway, Matthews reports the region focuses on long-term stability through tenant turnover and adaptive reuse. That strategy has led to a landlord-driven market with strong pricing and stable occupancy, according to Matthews.
Cushman & Wakefield reported there were less than 7,000 square feet of new deliveries in 2024, continuing a trend of low construction activity that dates back to late 2018, leading to limited supply. The overall vacancy rate for the second quarter was 3.2 percent, up 20 basis points quarter-over-quarter.
Second-quarter average asking rents were steady at $2.60 per square foot per month on a triple net basis with no change quarter-over-quarter and only down 0.4 percent year-over-year, according to Cushman & Wakefield. Current rates are 1.5 percent below the peak rent recorded in the first quarter of 2024.
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