Global investor teams up with Paragon Commercial Group to recapitalize grocery- and drug-anchored retail center in Orange County, CA
JLL Capital Markets brokered the recapitalization of Village Center in Fountain Valley, California
LOS ANGELES, Aug. 1, 2023 – JLL Capital Markets announced today that it has successfully assisted Paragon Commercial Group with the recapitalization of Village Center, a recently re-developed, 93,336-square-foot, neighborhood-serving, grocery- and drug-anchored center in Fountain Valley, California. Paragon recapitalized the property with Daiwa House Texas, a US subsidiary of the largest construction company in Japan.
In 2022, the seller completely renovated the asset, which is now anchored Sprouts Farmer’s Market and Rite Aid Pharmacy and was 97% leased at closing. Additional occupiers of the center include national tenants, such as Dollar Tree and Subway, along with a variety of local neighborhood-serving restaurants and service tenants. Additionally, it was recently announced that Dutch Bros, a popular drive-through coffee chain, will soon be opening its first Orange County location in the center.
Village Center is positioned on an 8.11-acre site at 17900 Magnolia St. in Fountain Valley, Orange County. More than 205,000 residents reside within three miles of the center, and the average household income is nearly $120,000.
“We have received overwhelmingly positive feedback from the community on the recent redevelopment of the center,” said Erwin Bucy, Principal of Paragon Commercial Group. “We especially want to thank Sprouts, the City of Fountain Valley and the Daiwa House teams for their collaborative and responsive engagement that allowed us to move quickly to bring this new community amenity to the neighborhood.”
JLL’s Capital Markets team representing the seller was led by Managing Directors Bryan Ley, Geoff Tranchina and Gleb Lvovich.
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About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Paragon Commercial Group
Paragon Commercial Group is a privately owned Los Angeles, CA based retail development company formed during the trough of the GFC to capitalize on opportunistic investment into value-add acquisition and tenant-driven retail development opportunities. Since its formation in 2009, Paragon has grown to be one of the leading strategic retail investors on the West Coast.
About Daiwa House Group
As Japan’s biggest construction company with over six decades of experience in Single Family Houses and rental housing, retail, industrial and construction, the Daiwa House Group (https://www.daiwahouse.com/English) continues to make strides in the United States by fulfilling its corporate mission of effective leadership, innovation and environmentalism through its wholly owned subsidiary: Daiwa House Texas.