NEWPORT BEACH, Calif. — JLL Capital Markets announced today that it has arranged a $17.55 million refinancing for Tustin Heights Shopping Center, a 137,287-square-foot, core, shopping center anchored by Trader Joe’s in the Orange County community of Tustin, California.
JLL worked on behalf of the borrower, Kimco Realty Corp. and an institutional real estate manager, to place the five-year, floating-rate loan with a national bank.
Completed in 1983 and renovated in 1993, Tustin Heights Shopping Center is 99-percent leased to an internet- and recession-resistant daily needs tenancy, including Trader Joe’s, Michael’s and Petco. The center is also home to a complimentary mix of national and regional tenants such as Sherwin-Williams, Sola Salon Studios, Rock & Brews, Welcome Dentistry, Pro Nails, 85 C Bakery Café, Jamba Juice, Subway, Sports Clips, Welcome Dentistry, Café Rio and more. Additionally, the center’s Smart & Final location is within the top 10 percentile of all Smart & Final locations in California, drawing an estimated 256,700 visitors annually, according to Placer.ai.
Tustin Heights Shopping Center is situated on 12.90 acres at 1076-1222 Irvine Blvd. in a prime retail corridor in Tustin, a densely populated Southern California community. This highly visible location along Irvine Boulevard exposes the center to more than 33,700 vehicles a day. The property serves an affluent Orange County customer base that includes more than 201,000 residents within a three-mile radius earning an average annual household income of $127,144, more than double the national average.
“Retail debt capital markets remain aggressive for best-in-class shopping centers, even with multiple big-box retailers,” said Senior Managing Director Chris Drew.
The JLL Retail Capital Markets team representing the borrower included Director John Marshall and Associate Samuel Godfrey.
“The investors had no shortage of offers from both banks and insurance companies who were able to bid on par with the best-of-best industrial pricing we are seeing today,” Marshall said. “The results reflect the borrowers’ reputation as two of the top retail sponsors globally.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
