- What DJM has listed Gateway Center in Mission Viejo, Calif.
- Why The property could fetch $50 million, a nearly 30% premium to the price it traded at in 2021
- What next JLL has the sales assignment
A shopping center in Orange County, Calif., is up for grabs and expected to command about $50 million, Green Street News can reveal.
The 79,000 sq ft Gateway Center in Mission Viejo is 97% leased. A purchase at the estimated value would produce an initial annual yield of 6.2%.
JLL has the listing for DJM Capital. The San Jose-based firm paid $39.5 million for the center in December 2021.
The center has a weighted average remaining lease term of 5.1 years. Major tenants include Baja Fresh, Chase, Cold Stone Creamery, Pacific Dental Services, Starbucks and Wells Fargo. Some 31% of the space is leased by tenants with an average tenure of 15 years, according to marketing materials.
The property’s net operating income has jumped 85% in the past nine years to a projected $3.1 million for 2025.
Gateway Center is on over 7 acres at 23972-24042 Alicia Parkway, and some 78,000 vehicles pass the property daily. It is less than 2 miles from the Interstate 5 Freeway.
Extreme supply constraints limit competition, according to the sales campaign, with less than 100,000 sq ft of retail space built in Mission Viejo over the past decade.
There are 19,000 residents with a median household income of $127,000 living within a mile, and 347,000 residents with a median household income of $132,000 within 5 miles. The property draws 887,000 visits each year.