Prudential Real Estate Investors Acquires 75 Percent Stake in Bella Terra Shopping Center in Huntington Beach, Calif.

DJM Capital Partners Retains 25 Percent Stake in Popular Destination Center, Will Continue to Lead Operations, Leasing, Further Expansion and Enhancements

HUNTINGTON BEACH, Calif.--()--Prudential Real Estate Investors and DJM Capital Partners, Inc., announced today the formation of a joint venture to own and manage Bella Terra Shopping Center in Huntington Beach, Calif., which DJM Capital Partners has owned and operated since 2005. PREI is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE:PRU). DJM Capital Partners is a private equity investment, development and asset management services firm specializing in retail real estate.

As part of the transaction, PREI acquired about a 75 percent stake in the Class-A, 840,909 square-foot outdoor retail center with an affiliate of DJM Capital Partners retaining about a 25 percent stake. DJM Capital Partners’ prior partner, an institutional investor advised by Sarofim Realty Advisors, sold its interest to PREI.

DJM Capital Partners 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 Realty Advisors and DJM Capital Partners 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. We anticipate significant enhancements to the center over the long-term, improving the customer experience, layout and amenities,” said Eric Sahn, chief financial officer of DJM Capital Partners.

“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 R. 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 Capital Partners has reinvigorated the property, transforming it into a dynamic destination for dining, shopping and residential living. The new joint venture between PREI and DJM Capital Partners 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 D. John Miller, Founder and CEO of DJM Capital Partners. “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.”

About Prudential Real Estate Investors

Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE:PRU). Investing in real estate on behalf of institutional clients since 1970, PREI today has more than 650 employees located in 19 cities around the world, and gross assets under management of $58.7 billion ($44.1 billion net) as of December 31, 2014. PREI offers to its global client base a broad range of real estate investment vehicles across the risk-return spectrum and geographies, including core, core plus, value-add, opportunistic, debt, securities, and specialized investment strategies. For more information, visit www.prei.com.

About DJM Capital Partners

DJM Capital Partners, Inc. provides private equity investment, development and asset management services within the real estate sector. With core strength in retail combined with expertise in office, industrial and residential product types, DJM Capital Partners’ superior market knowledge and strategic acquisition of undervalued assets is represented by a current portfolio of more than two million square feet. Additionally, a forward-looking development slate represents another 310,000 square feet, with new properties Lido Marina Village in Newport Beach and Pacific City on PCH across from the iconic Huntington Beach Pier both opening later this year. This will represent an estimated total portfolio asset value of over $1 billion. Finding creative solutions to complex situations involving underperforming or improperly capitalized assets, DJM Capital Partners creates incremental value through skilled branding and repositioning, architectural enhancement, savvy leasing and keen operational know-how. www.djmcapital.com

About Bella Terra Shopping Center

For more information about the Bella Terra Shopping Center, visit www.bellaterra-hb.com.

Contacts

Prudential Real Estate Investors
John Chartier, 973-802-9829
john.chartier@prudential.com
or
Kitchen Table PR
Carrie Williams / Cristen Stapp
949-433-6735
carrie@kitchentablepr.com

Contacts

Prudential Real Estate Investors
John Chartier, 973-802-9829
john.chartier@prudential.com
or
Kitchen Table PR
Carrie Williams / Cristen Stapp
949-433-6735
carrie@kitchentablepr.com