After spending millions of dollars modernizing the Village at Orange, property owner Vestar has sold it for $84.5 million, a real estate broker announced Wednesday.
The deal comes after Phoenix-based Vestar purchased the 855,728-square-foot mall in an all-cash deal in September 2013. A few months later, Vestar revealed it had secured an acquisition loan of $45.4 million to finance the purchase and significant upgrades.
The Register reported the recent sale early last month. However, Vestar repeatedly declined to comment on the deal. On Wednesday, Holliday Fenoglio Fowler of Dallas confirmed the sale in a statement but declined to name the buyer.
Property records show Carlsbad-based TRC, formerly known as Terramar Retail Centers, bought the mall, according to Irvine-based CoStar, which tracks commercial real estate transactions. TRC, which owns about 36 shopping centers, did not immediately return requests for comment.
The mall was 92 percent leased at the time of sale, according to HFF. Managing director Bryan Ley, who is based in HFF’s Los Angeles office, said the new owner is expected to finish upgrades started by Vestar more than a year ago.
Over the last 18 months, upgrades have included a makeover of the mall’s two main entrances. New tenants targeting a younger demographic include The Habit Burger Grill, Buffalo Wild Wings, Noodles & Co., Ulta Beauty and Jimmy John’s Gourmet Sandwiches.
Last year, HomeGoods, the household division of T.J. Maxx, replaced the shuttered Old Navy. Buffalo Wild Wings moved into the former Oggi’s full-service space near Wal-Mart. San Clemente-based Oggi’s used the mall to test a build-your-own, fast-food pizza concept.
Other mall tenants include Trader Joe’s, Sprouts Farmers Market, Ross Dress for Less, Party City and PetSmart.
“The superior location, exceptional tenant lineup and affluent trade area ensure the success and long-term value appreciation of the property,” Ley said in a statement. “Retail properties of this caliber in Southern California rarely trade hands, and the new owner is excited to continue the positive momentum that the previous owner has generated.”
Over the past 14 years, the mall has changed hands a few times. In 2004, Passco Real Estate Enterprises of Irvine led a purchase of the Village at Orange. The group of investors paid Rawson, Blum & Leon $90.1 million for the property. In 2002, RBL bought the mall, then called the Mall of Orange, for $24.2 million. It changed the mall’s name and spent $57 million making upgrades.
TRC’s shopping centers are in Washington, Oregon, California and Colorado. The company, founded in 1996, was previously known as GMS Realty.
Contact the writer: nluna@scng.com
