DJM Sells Mission Viejo Retail Property in Orange County

Orange County-based private equity real estate and development firm DJM Capital Partners (DJM) recently announced the sale of its retail property in Mission Viejo, Calif. Closed earlier this month, this sale saw the Gateway Shopping Center change hands for $51 million in an all-cash deal. The new owner is Asana Partners, a vertically integrated retail real estate investment firm based in Charlotte, N.C.

DJM previously acquired the property in December 2021 for $39.5 million from Gerrity Group. At that time, the shopping center was 83% occupied. Following the subsequent implementation of a targeted repositioning strategy, DJM brought property occupancy up to 97% at the time of this most recent sale. The successful strategy included new leases with Pacific Dental and select restaurant and boutique fitness tenants, as well as property improvements, such as enhanced landscaping, refreshed paint, and the introduction of a weekly community farmers market.

Gateway Shopping Center retail space in Mission Viejo at 23872 Alicia Pkwy.

“Our investment thesis focused on high-quality, densely populated suburban markets like Mission Viejo that consistently support retail demand, strong occupancy, and rental growth,” said Rob Miller, chief executive officer of DJM. “Gateway Center is a great example of how disciplined capital deployment, thoughtful leasin,g and strategic asset management can meaningfully enhance long-term value.”

Originally completed in the late 1970s, the Gateway Shopping Center encompasses nine buildings and incorporates nearly 80,000 square feet of Mission Viejo retail space. Located in the heart of the city along the highly trafficked Alicia Parkway, the property offers exceptional visibility and accessibility.

Gateway Center serves the surrounding affluent community and boasts a strong mix of daily-needs and service-oriented tenants, including national and local names, such as Starbucks; Baja Fresh; Saddleback Family & Urgent Care; and Chase.

With 34 years of experience in deploying capital with discipline and conviction across California retail markets, DJM consistently drives leasing momentum and long-term value creation. According to the statement of sale, this acquisition of the grocery-anchored asset represents a 29% increase over the original investment and a 6% capitalization rate on net operating income.

Orange County retail space in Mission Viejo at Gateway Shopping Center on Alicia Parkway.