Vestar Lands $45M for Mall Purchase

ORANGE, CA-Phoenix-based Vestar has acquired acquisition financing for Village at Orange, a regional mall located on more than 60 acres here. The firm acquired the 855,728-square-foot shopping center for cash in September 2013 and is planning upgrades for it. The seller was not disclosed.

The total loan consideration from Bank of America is $45.43 million, with the interest on the loan set at a variable rate above Libor. According to Ed Reading, EVP of Vestar, “The favorable financing, coupled with the property's strong fundamentals, makes this an ideal value-add investment opportunity for Vestar. We will continue to look for similar asset in the western US as we have the unique ability to act very quickly on properties that fit our acquisition criteria.”

The firm is planning significant redevelopments for the project, including adding new major and junior anchor stores while upgrading common areas of Village at Orange. This effort is meant to upgrade tenancy and create a more viable project and a better sense of place for the local community.

Located on the west side of Tustin St., the mall has regional access via the 55 freeway. It is the major multi-tenant mall in the area, with retails including JCPenney, Sears, Walmart, Sprouts, Trader Joe's, CVS, Ross Dress for Less, Old Navy and Cost Plus.

Vestar plans to pursue value-add retail investment opportunities, having acquired well over $1 billion in the past three years. The firm, which has a reputation for repositioning and creating value in retail assets in the western US, currently owns and manages 22 million square feet of them in the region.

As GlobeSt.com reported last month, Vestar acquired the Orchard Town Center retail complex in Denver for $123.5 million. UBS Global Asset Management of New York is also a partner in the Orchard purchase, according to an industry report.