NEWPORT BEACH, CA-Locally based Burnham USA Equities Inc. and its affiliate Burnham-Ward Properties LLC have closed escrow on two commercial properties in Orange County, one of them an REO. The company bought an 80,000-square-foot former Mervyns in Laguna Niguel from a lender for nearly $8 million and, separately, acquired the approximately 30,000-square-foot Pacific Plaza office/retail center in Costa Mesa from its original developer for nearly $6 million.

The former Mervyns is within the 508,000-square-foot Marketplace at Laguna Niguel shopping center at 27200 Alicia Parkway, at the intersection of Alicia Parkway and Pacific Parkway (Oso Pkwy). The property, which sold for approximately $25 million several years ago, was under the control of Sperry Van Ness which acted as the receiver for the lender on the property. Burnham was represented by Fouy Ly of Sperry Van Ness.

Stephen Thorp, executive vice president of Burnham USA and partner in Burnham-Ward Properties LLC, describes the former Mervyns as "strategically located within some the strongest demographics in Orange County. The barriers to entry are nearly insurmountable, and it is not often that a building of this size and quality becomes available to purchase."

Thorp adds that Burnham USA is "in active negotiations with several prospective retailers" and says he expects to announce its new tenancy soon. The Marketplace at Laguna Niguel was developed by Shapell Industries in 1994-95 and is anchored by Wal-Mart, Vons, Old Navy, Party City, Tilly’s and numerous other tenants.

Burnham bought the Pacific Plaza property, which is on East 17th Street in Costa Mesa, from Art Shapiro, who was the original developer of the property in the late 1970’s. The office/retail project was developed in 1977 and has maintained an average occupancy in excess of 98% since its inception.

Bryon Ward, a partner of Burnham-Ward Properties LLC, points out that the company has had "a strong interest in purchasing Pacific Plaza for many years" because it is the cornerstone for the East 17th Street retail corridor. "The iconic nature of the property, coupled with its irreplaceable location, lends itself to a sustainable future and stable growth," he said. The acquisition was financed by Bank of America, with which Burnham USA has maintained a 25-year relationship.

Burnham USA, which was extremely active in acquiring strategic assets in the recession of the early 90’s, "remains in an aggressive acquisition mode and looks to acquire several assets before the end of the year," according to the company's announcement of its new deals.

The two recent acquisitions follow its acquisition of other high-profile bank owned assets. In 2009, Burnham USA/Burnham-Ward purchased the former South Coast Home Furnishing Center for nearly $40 million and has since completed a multi-million dollar renovation and a complete rebranding of the property. South Coast Collection, or “SOCO” as it has been branded, "has been completely transformed and is slated for a grand reopening towards the end of the year," the company says.