The developer will use new funding from Prime Finance and Arc Capital Partners to finalize the transformation of its waterfront Newport Beach property
LOS ANGELES, Calif.—DJM, a California-based private equity real estate developer, announced today its successful recapitalization of Lido Marina Village, a 116,000 square-foot waterfront boutique retail and office property, with a $46.5 million loan from Prime Finance and an additional $24.5 million of new equity from Arc Capital Partners. This new capital for the Newport Beach hotspot will be used to pay off an existing loan and complete property renovations. Financing was arranged by Steven Bram, David Pascale and Patrick O’Donnell of George Smith Partners.
Situated on the Balboa Peninsula, Lido Marina Village stretches inland from the channel waterfront to include a pedestrian walkway and Via Lido, a public street. The iconic destination combines premier retail, restaurants and office space inside 14 waterfront structures that boast spectacular harbor views. Lido Marina Village eateries include Orange County’s only Nobu and Malibu Farm locations; alongside such renowned restaurants, Lido visitors can find leading retailers by the likes of Elyse Walker, LoveShackFancy, Serena & Lily, and Jenni Kayne.
Since acquiring Lido Marina Village in 2013, DJM has performed extensive renovations that have transformed the property’s format and appearance. Additionally, they have rebranded the property as a luxurious attraction known by tourists and visitors alike for its high-profile tenants. Despite the COVID-19 pandemic, DJM has maintained tenant occupancy at Lido Marina Village and has even signed several new leases in late 2020 including luxury consignment retailer The RealReal, bespoke bakery Rye Goods and fine jeweler Marrow Fine. Amidst local and nationwide restrictions and widespread uncertainty, Lido Marina Village has continued to thrive as shoppers gravitated to Lido’s open-air, pedestrian-friendly, waterfront environment.
“The DJM team has done an incredible job of redeveloping and remerchandising Lido Marina Village,” said Neville Rhone Jr, Co-founder and Managing Partner of Arc Capital Partners. “The property is a best-in-class example of a dynamic mixed-use environment, and we look forward to its continued success as a magnet for the many people who live in and visit Southern California.”
“Successfully recapitalizing Lido Marina Village amidst the COVID-19 pandemic is a true feat and a testament to the property itself,” said Bob Brown, Chief Investment Officer at DJM. “This moment speaks to Lido Marina Village’s undisputable strengths, and we are thrilled to position the project for continued success.”
Lindsay Parton, President of DJM, expressed similar sentiments to Brown, noting that Lido Marina Village’s attributes are something to behold. “Originally, what attracted us to this investment was the property’s incredible location on Newport Harbor,” Parton explained. “Back then, we had the exciting opportunity to create an iconic gathering place, which we successfully did. Now, and with this round of financing, we’re able to put the final additions on Lido’s renovations as the expiration of some legacy tenant spaces allows us to add new businesses to the Lido experience.”
About DJM
DJM is a private real estate equity and development firm based in Southern California. With a core strength in retail combined with expertise in office and residential asset classes, DJM’s market knowledge and strategic acquisition of undervalued assets is represented by a current portfolio of approximately three million square feet with an estimated total portfolio value of $1 billion.
About Arc Capital Partners
Arc Capital Partners (“Arc”) is a real estate owner-investor dedicated to investing in urban mixed-use environments. Arc, through its ArcWest Partners partnership with the California Teachers Retirement System and Belay Investment Group, is positioned to acquire and invest in $450 million of real estate located primarily in California and Texas.
About Prime Finance
Since its founding in 2008, Prime Finance has originated hundreds of mortgage and mezzanine loans totaling over $14.5 billion. Prime focuses on floating rate, non-recourse bridge loans ranging in size from $10 to $200+ million. Its origination teams in San Francisco, Chicago and New York provide financing solutions in all markets across the United States for a broad range of property types, including office, multifamily, industrial, hospitality, retail, student housing and a variety of other specialized commercial real estate assets.
