Regency Centers Completes $357-Million Portfolio Acquisition in Orange County

Regency Centers Corporation has announced the acquisition of a portfolio of five premier suburban shopping centers, all located within the 23,000-acre Rancho Mission Viejo master-planned community in Orange County. The acquired portfolio consists of Bridgepark Plaza, Mercantile West, Mercantile East, Terrace Shops and Sendero Marketplace, comprising close to 630,000 square feet in aggregate.

“We are excited to expand Regency’s presence within this thriving Orange County community and to add these high-quality centers to our best-in-class operating platform,” said John Mehigan, senior vice president of investments in the West Region. “The addition of this portfolio enhances our position within one of the most supply-constrained coastal markets in the U.S.”

The centers are seamlessly integrated into the surrounding community and are merchandised with a robust line-up of needs-based tenants, including highly productive grocers, restaurants, and health, wellness, and personal service uses. The portfolio is 97% leased with grocer sales approaching $800 per square foot, and demographic trends in the community are strong, including a three-mile average household income of approximately $200,000.

“This acquisition strategically aligns with Regency’s capital allocation objectives, including accretion to earnings, quality and growth,” said Nick Wibbenmeyer, West Region president and chief investment officer. “Additionally, our structure as an UPREIT and ability to issue OP units provided flexibility for the sellers in structuring the transaction.”

Regency funded the $357-million purchase price with a combination of operating partnership units issued at $72 per unit, the assumption of $150 million of secured mortgage debt and $7 million in cash used to pay off a single secured loan. The assumed debt has a weighted average interest rate of 4.2% and term to maturity of approximately 12 years. The transaction is expected to be accretive to Regency’s 2025 Core Operating Earnings per share.

BofA Securities served as financial advisor, and EY served as tax advisor to the seller. The seller was advised on legal matters by Latham & Watkins. Regency Centers was advised on legal matters by Paul Hastings. Information sourced from Regency Centers.

Learn more by contacting EricDavidson@RegencyCenters.com.