Barings Acquires Orange County Shopping Center for $66.2 Million

A shopping center in Orange County, the Village Center at Rose, has been purchased by Barings for $66.2 million, according to L.A. Business First. This transaction is one of the most expensive retail deals in the region this year.

The 119,000-square-foot retail complex, located at 600-858 North Rose Drive in Placentia, was sold by First Washington Realty, a Bethesda, Maryland-based company. First Washington Realty had acquired the property in 2022 from Donahue Schriber Realty, which had owned it since 1997.

Built in 1996, the Village Center at Rose is fully leased. It is anchored by a Ralphs grocery store, which occupies 37% of the property and has been a tenant since the center opened. Other tenants include Jersey Mike's, UPS, Cold Stone Creamery, WaBa Grill, Chase Bank, and Carl's Jr. Approximately 80% of the tenants have been in the center for over 10 years.

Kevin Miller, Barings' Head of U.S. Real Estate Acquisitions, stated that the purchase aligns with their strategy to invest in “necessity-based retail” to strengthen portfolio income and cash flow. The property's location in a supply-constrained market and its established tenant base were key factors, according to Miller. Mark Damiani of CBRE, who represented First Washington Realty in the sale, noted that the center serves a dense trade area with strong household incomes and limited new retail supply. Over 147,000 people live within three miles of the center, with an average household income of about $154,800 in the surrounding five-mile trade area.

This $66.2 million deal is among the highest-priced retail transactions in Orange County this year. Another significant deal was Blackstone's $56.2 million sale of the Peninsula Marketplace in Huntington Beach. Barings was also involved in the county's largest retail transaction of the year, selling the Seacliff Village retail plaza in Huntington Beach for $151 million.

Retail vacancy in Orange County during the third quarter was 3.3%, a slight decrease from 3.5% a year earlier, according to Kidder Mathews.

This sale highlights continued investor interest in Orange County's retail market, especially for properties with stable, long-term tenants in dense residential areas.