Paragon, Canyon Bullish on Daily Needs Retail

LOS ANGELES—Paragon Commercial Group remains bullish on the retail market in California. The firm has partnered once again with Canyon Catalyst Fund to acquire retail properties in California. The second fund from the joint venture will invest $60 million to $100 million in daily needs retail product. Paragon has opened a second office in Northern California to expand its reach.

“We are really focused on target markets, specifically urban infill markets, and we are focused on daily trips driven retail. That used to be known as grocery anchored retail, but the grocery industry has evolved as has our definition of grocery,” Jim Dillavou, of Paragon Commercial Group, tells GlobeSt.com. “It is stuff that people need to go to that they need to look and touch and feel.  Our strategy is daily trips driven, and that could mean a grocery store, or other chains, like Target and Walmart, which have grocery components and which we also consider to be daily trips drivers. All of the retail that we are investing in is a synergy of retailers that we believe is durable and insulated against online sales.” Dillavou adds that the firm avoids power centers, which typically don’t have a daily needs component and have large box spaces.