HUNTINGTON BEACH, CA—Prudential Real Estate Investors and DJM Capital Partners, have formed a joint venture to own and manage Bella Terra Shopping Center here. DJM has owned and operated the center since 2005.

PREI is the real estate investment management and advisory business of publicly-taded Prudential Financial, Inc. DJM Capital is a private equity investment, development and asset management services firm specializing in retail real estate.

As part of the transaction, Prudential Real Estate Investors (PREI) acquired about a 75% stake in the class-A, 840,909 square-foot outdoor retail center with an affiliate of DJM Capital Partners retaining about a 25% stake. DJM Capital Partners' prior partner, an institutional investor advised by Sarofim Realty Advisors, sold its interest to PREI.

DJM will continue to lead the property management and leasing at the site, which has evolved into one of Southern California's most successful outdoor lifestyle centers. Sarofim and DJM were advised in the transaction by Eastdil Secured.

“The new partnership between DJM Capital Partners and PREI is designed to successfully own, operate and continue to improve Bella Terra for many years to come,” said Eric Sahn, chief financial officer of DJM. “We anticipate significant enhancements to the center over the long-term, improving the customer experience, layout and amenities.

“We will also curate an exciting new collection of tenants to complement the existing roster, one that successfully draws visitors from throughout the region.”

“Bella Terra is one of the top retail centers in Orange County and represents a rare opportunity to acquire a high-quality regional retail center in a high barrier, coastal market on behalf of our investors,” said Kevin Smith, head of Americas for PREI. “We are pleased to add DJM Capital Partners to our successful partnership network and look forward to leveraging the depth and breadth of our firms' extensive investment, asset and property management expertise to continue to enhance the retail center for the benefit of tenants and the Huntington Beach community.”

Since purchasing Bella Terra in 2005, DJM has reinvigorated the property. The new joint venture includes the original shopping center and the new Costco, while DJM Capital Partners separately owns and operates the retail underneath Bella Terra's luxury apartments.

“Working with our new partners at PREI, DJM Capital Partners will continue to drive the growth and evolution of Bella Terra as one of California's most successful destinations,” said John Miller, founder and CEO of DJM. “Our strategic redevelopment and leasing efforts at Bella Terra are emblematic of DJM Capital Partners' approach to effective real estate investment. The performance of the center is powerful validation of our ability to identify unique properties, provide skilled asset management, and create significant value through creative re-development. We are invigorated to take the property to another level and optimize its tremendous potential for even greater success.”