Paragon Recapitalizes Orange County Shopping Center
The owner obtained a $17 million permanent loan.
Paragon Commercial Group has recapitalized Village Center, a 93,336-square-foot retail asset in Fountain Valley, Calif., with a $17 million permanent loan. The company completed the financing agreement in partnership with Daiwa House Texas, a U.S. subsidiary of the Japan-based construction company. CNO Financial Group Insurance Co. provided the funds, according to CommercialEdge data.
JLL Capital Markets brokered the transaction, with Managing Directors Bryan Ley, Geoff Tranchina and Gleb Lvovich working on behalf of Paragon.
Paragon purchased the property back in 2021 from Martineau Properties for $14.7 million, according to CommercialEdge. Everlake Life Insurance Co. originated a $15 million acquisition loan, which was retired through the current agreement.
Built in 1966, Village Center comprises two buildings on an 8.1-acre lot. Anchored by Sprouts Farmer’s Market and Rite Aid Pharmacy, the property has a diverse mix of local and national retailers. The tenant roster includes Dollar Tree, Subway, Big Lots and Bank of America. The asset is 97 percent occupied.
The shopping center is at 17904 Magnolia St. in Orange County’s Huntington Beach submarket. Situated in an area where the average household income is approximately $120,000, Village Center serves more than 205,000 residents within a 3-mile radius.
Lincoln Property Co. and Paragon have recently formed a joint venture, under which Paragon will serve as Lincoln’s West Coast retail operator. The partnership’s retail investments are set to include acquisition, redevelopment and ground-up development of open-air neighborhood and community centers.