News Summary
Buie Stoddard Group has secured a $54 million credit facility for refinancing five retail centers in Southern California, aiming to enhance operational stability. The financing, arranged by MetroGroup Realty Finance, consolidates existing mortgages with loans ranging from $5 million to $25 million. This move comes amidst a stabilizing retail landscape in Orange County, though challenges in the leasing sector remain. Buie Stoddard Group now boasts a portfolio of 16 properties in the region, reflecting its significant investment presence.
Laguna Niguel, CA – Buie Stoddard Group has successfully secured a $54 million credit facility for refinancing five retail centers located primarily in Southern California. The financing was facilitated by MetroGroup Realty Finance, a commercial mortgage banking firm based in Newport Beach, which handled the arrangement to replace existing mortgages on the portfolio.
The new loans for the retail centers range from $5 million to $25 million each, consolidating financing and potentially reducing costs associated with the original mortgages, which were also provided by MetroGroup. This strategic financial move aims to enhance the operational stability of the shopping centers.
The five retail centers that are part of this portfolio were acquired by Buie Stoddard Group at different points in time, spanning from 1987 to 2011. Four of these properties are situated in South Orange County and one in North San Diego County. They include:
– The Commons at Aliso Viejo Town Center: 26,541 square feet, located at 26501 Aliso Creek Road, Aliso Viejo.
– Laguna Niguel Town Center: 98,157 square feet, located at 30001 Town Center Drive, Laguna Niguel.
– Moulton Plaza: 17,117 square feet, located at 28083 Moulton Parkway, Laguna Niguel.
– Ortega Village: 40,515 square feet, located at 31654 Rancho Viejo Road, San Juan Capistrano.
– High Country Plaza: 20,598 square feet, located at 15805 Bernardo Center Drive in San Diego.
Tenants of these shopping centers include local businesses such as South Coast Veterinary Center, Laguna Niguel Montessori Center, and OC Pharmacy.
Buie Stoddard Group’s overall portfolio now consists of 12 properties in South Orange County and four in San Diego County, highlighting a significant investment presence in these markets. Through the recent refinancing, the company aims to leverage the quality and upgrades made to these properties, which have attracted favorable long-term fixed-rate pricing.
MetroGroup Realty Finance, established in 1983, specializes in capital advisory and mortgage banking services across the nation. According to MetroGroup’s president, the involvement of two lenders in securing the financing streamlined the process and minimized transaction costs.
The retail investment landscape in Orange County has shown signs of stabilization, with reports indicating a total sales volume of $305.7 million in Q2, approximately matching the $300 million seen in Q1. Despite broader economic uncertainties, a few notable transactions exemplify this emerging trend. These include Space Investment Partners’ acquisition of Fullerton MetroCenter for $118.5 million and Terreno Realty’s acquisition of a Home Depot location in Santa Ana for around $50 million.
However, the retail leasing sector faced challenges in Q2, with 391,000 square feet of retail space becoming available, compared to just about 60,000 square feet in Q1. This increase in space availability has coincided with rising vacancies, driven in part by bankruptcies of several major retailers including Rite Aid and Big Lots, and the closure of various At Home stores in key locations such as Costa Mesa and Tustin.
The West County area in Orange County has notably experienced the steepest decrease in vacancy rates among retail submarkets in the United States in the past year. With limited construction activity continuing, expectations suggest that tight conditions within the local retail market could linger as economic factors evolve.
This refinancing by Buie Stoddard Group underscores a proactive approach amidst volatility in the retail sector, allowing the company to maintain its foothold in Southern California’s retail landscape while adapting to changing market conditions.
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Additional Resources
- Commercial Observer
- Wikipedia: Refinancing
- The Real Deal
- Google Search: Buie Stoddard Group retail refinancing
- Orange County Business Journal
- Encyclopedia Britannica: Retail
- Dignity Memorial
- Google News: Southern California retail centers
- Patch
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
