Vestar Secures $45 Million Loan for Village at Orange in Orange, California
Vestar announced today that it had secured acquisition financing for Village at Orange, an 855,728-square-foot regional mall located in the heart of Orange County on 60+ acres in Orange, Calif. The total loan consideration from Bank of America is $45,430,000 with the interest on the loan set at a variable rate above Libor. Vestar acquired the asset for cash in September of 2013.
“The favorable financing coupled with the property’s strong fundamentals makes this an ideal value-add investment opportunity for Vestar,” said Ed Reading, Executive Vice President of Vestar. “We will continue to look for similar assets in the western United States as we have the unique ability to act very quickly on properties that fit our acquisition criteria.”
Vestar is embarking on plans to significantly redevelop the project adding new major and junior anchor stores while upgrading common areas of Village at Orange. This effort will significantly upgrade tenancy and create a more viable project and a better sense of place for the Orange community.
Located on the west side of Tustin Street in the city of Orange, the mall has regional access via the 55 Freeway. It is the major multi-tenant mall in the area with retailers including JC Penney, Sears, WalMart, Sprouts Market, Trader Joe’s, CVS, Ross Dress for Less, Old Navy and Cost Plus Vestar continues to pursue value-add retail investment opportunities, having acquired well over $1 billion in the past three years. The firm has a strong reputation for repositioning and creating value in retail assets in the western United States. Vestar currently owns and manages 22 million square feet of retail assets in the western U.S.