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ONTARIO, CA-Zelman Development Co. has completed a $25-million recapitalization involving its ownership of the 211,898-sf Ontario Gateway retail center.

The company, both an owner and developer of power retail centers, originally planned to sell the property, says Michael Ross of Colliers Seeley International’s Southern California Investment Services Group. However, Zelman officials then changed their mind and decided to recapitalize the partnership instead. “We actually found a partner for them that would come in and take out their existing lender and become a new partner in the deal,” says Ross, who worked on the transaction. “They capitalized the project at the asking price that we had, which was $25 million.”

The new funds will be used to develop as much as 30,000 sf of additional retail space at the 23-acre Ontario site. “Zelman is very happy because they want to develop the rest of the project,” Ross tells Globest.com.

Ross, along with Bill Bauman and Bill Legier of Colliers Seeley’s Retail Division, acted on behalf of the title subsidiary, Zelman Retail Partners LLC, in the transaction.

Currently 97% leased, the Ontario Gateway is occupied by national credit tenants, including Toys “R” Us, Babies “R” Us and Outback Steakhouse. It is located at the junction of Interstate 10 and Interstate 15, directly adjacent to Ontario Mills Mall. This retail environment attracts more than 20 million customers annually.

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