DJM has sold Gateway Center, a grocery-anchored neighborhood retail center in Mission Viejo, California, for $51 million in an all-cash transaction with an institutional buyer, the firm said. The deal was priced at a 6% capitalization rate on net operating income and closed with the property 97% leased.
Completed in 1979, the 7.35-acre center is located at 24000 Alicia Parkway in South Orange County and is positioned along a corridor with more than 78,000 vehicles per day, according to DJM. The tenant roster includes a mix of national and local operators such as Starbucks, Baja Fresh, Saddleback Family & Urgent Care, and Chase.
DJM acquired Gateway Center in December 2021 from Gerrity Group for $39.5 million, when the asset was 83% occupied. Following the purchase, the company executed a repositioning plan that included signing new leases with Pacific Dental and additional restaurant and boutique fitness tenants, alongside upgrades such as enhanced landscaping, refreshed paint, and the launch of a weekly community farmers market. DJM said the initiatives increased occupancy to 97% at the time of sale and contributed to a 29% increase in value from acquisition to disposition.
KEY QUOTE:
“Our investment thesis focused on high-quality, densely populated suburban markets like Mission Viejo that consistently support retail demand, strong occupancy, and rental growth… Gateway Center is a great example of how disciplined capital deployment, thoughtful leasing, and strategic asset management can meaningfully enhance long-term value.”
Rob Miller, Chief Executive Officer, DJM
