Regency Centers Closes $357M Portfolio Deal

Regency Centers Corp. has acquired a five-property retail portfolio in Orange County, Calif., for $357 million. Rancho Mission Viejo sold the assets totaling nearly 630,000 square feet, according to Yardi Research Data.

Regency Centers funded the acquisition through a mix of operating partnership units priced at $72 each, the assumption of $150 million in secured mortgage debt and $7 million in cash to retire an existing loan. The assumed debt carries a 4.2 percent average interest rate and a 12-year term.

The seller received financial advice from BofA Securities and tax guidance from EY. Legal matters were handled by Latham & Watkins. On the buyer’s side, Regency Centers received legal counsel from Paul Hastings. This transaction aligns with current retail industry trends favoring open-air centers in affluent suburban markets.

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Last year, Regency Centers—in a partnership with Brand Street Properties—entered the Providence, R.I., market with the purchase of East Greenwich Square, a 158,709-square-foot grocery-anchored shopping center in East Greenwich, R.I., and also commenced construction of Oakley Shops at Laurel Fields, a new Safeway-anchored ground-up project in Oakley, Calif.—its first development in the Northern California market.

Inside the portfolio

The retail centers are located within the 23,000-acre Rancho Mission Viejo master-planned community. These include:

• Bridgepark Plaza – 99,518 square feet, 27702 Crown Valley Parkway
• Mercantile West – 149,517 square feet, 25636 Crown Valley Parkway
• Mercantile East – 285,000 square feet, 27502 Antonio Parkway
• Terrace Shops – 50,900 square feet, 1101 Corporate Drive
• Sendero Marketplace – 96,400 square feet, 30721 Gateway Place

The properties are nearly fully leased, with key tenants including grocers, restaurants and personal services. Grocer sales are close to $800 per square foot, according to Regency Centers. The area the shopping centers serve has an average household income of approximately $200,000 within a 3-mile radius.

The properties’ tenant roster features regional and national retailers, including Starbucks, ULTA, GameStop, Sendero Animal Hospital, CVS Pharmacy, Crumbl Cookies, Five Below, Home Goods, Trader Joe’s, Chase Bank, Chick-fil-A, McDonald’s and Burger King, among others.