Retail Center Sells Despite $32M Encumbrance

Plaza El Paseo is occupied by a diverse mix of tenants.

RANCHO SANTA MARGARITA, CA—GlobeSt.com has learned exclusively that K&G El Paseo 1 & 2, LLC has sold Plaza El Paseo at Rancho Santa Margarita Town Center, a legacy-quality shopping center here, for $56.6 million to Plaza El Paseo Center, LLC. The center, which totals approximately 107,000 square feet of building area and is occupied by a diverse mix of tenants, was sold despite a $32-million encumbrance.

Built in 2002 and situated on 10.56 acres at the corner of El Paseo and Alma Aldea, the asset is anchored by Bed, Bath & Beyond; BevMo and Wood Ranch BBQ. It is centrally located within the 1-million-square-foot Santa Margarita Town Center, one of the region’s most successful master-planned retail developments, and is adjacent to Kohl’s and the Rancho Santa Margarita City Offices.