In a move signaling a significant shift in the Orange County retail market, the owners of the Bella Terra shopping center are planning to sell the sprawling property. Spanning 853,000 square feet, Bella Terra, located in Huntington Beach, is poised to become one of the largest retail deals in the region, with an anticipated sale price of approximately $300 million, or $351 per square foot, according to a report from Commercial Observer.
PGIM Real Estate and DJM Capital, the current owners, have enlisted Eastdil Secured to spearhead the marketing efforts for the Bella Terra property. DJM Capital acquired the property in 2005, with PGIM Real Estate acquiring a 75 percent stake in 2015.
Situated at 7777 Edinger Ave., Bella Terra boasts an occupancy rate of 96.8 percent. Key anchor tenants include renowned brands such as Whole Foods and Costco, along with a diverse array of retail outlets including Burlington, The Cheesecake Factory, Kohl’s, REI and Ulta Beauty.
Additionally, the owners have secured entitlements for future development, including plans to construct 300 multifamily units and 25,000 square feet of additional retail space.
Overall, Orange County’s retail market has remained stable over the course of the last several quarters. According to a first quarter market report from Kidder Mathews, the vacancy rate in the region has remained the same year-over-year at four percent. Additionally, rental rates and construction deliveries are trending up. Rental rates increased by nearly four percent to $2.68 per square foot per month, while construction deliveries increased by more than 112 percent, the report shows.
