Re-development and Re-vitalization of iconic retail village and marina planned by DJM.
DJM Capital Partners, Inc. announced its recent acquisition of the approximately 123,000 square foot waterfront retail center, Lido Marina Village, from Vornado Realty Trust in an off-market transaction. Concurrently, DJM also acquired the fee interest in one of the ground leases that the property sits on. DJM will embark on a strategically planned re-vitalization effort for the entire property, including the 50-boat slip marina. Efforts to attract a dynamic and upscale mix of new retail and restaurant tenants is already underway on the more than half-vacant property, DJM’s latest addition to its growing portfolio of well-located California retail centers.
Vornado Realty Trust, one of the largest owners and managers of commercial real estate with a portfolio of over 100 million square feet primarily located in the New York and Washington DC areas, initially acquired the property with a JV partner in hopes of creating a whole new project. When the JV partner defaulted on the loan while managing the property and let it languish, Vornado bought them out. However, with Vornado’s recent decision to divest themselves of non-conforming portfolio assets, DJM saw an opportunity to strike an off-market deal and bring their strong expertise in retail re-development and enhancement into play.
“This is right in our sweet spot,” noted Lindsay Parton, President of DJM Capital Partners. “We look for opportunities in great coastal communities with strong demographics, and this property couldn’t offer better surrounding geography or customer profiles. The local community has wanted this property upgraded for years, and our intention is to make it the re-imagined jewel the locals have desired for a long time. If we listen to the locals and get it right in the ambience and tenant mix, this can become one of the most successful properties in our portfolio.”
Embarking on an imaginative and market-sensitive design and leasing effort, DJM is hiring a dynamic team of creatives across various disciplines to re-imagine and re-interpret Lido Marina Village in a “smaller is better”, high-touch way that will feel crafted and curated rather than designed and developed in the way a larger, more conventional shopping center might be undertaken. “This will be a sophisticated, fashionable yet family-friendly and casual place,” says Parton. “We are being very careful about the leasing at Lido – Orange County already has lots of great retail and we are committed to bringing something very new to this project. We’re thinking ‘place’ rather than ‘project’, with every small detail being critical. Creatively, it’s one of the more exciting opportunities we’ve undertaken at DJM, and our team’s level of excitement is off the charts. We’re grateful our initial leasing efforts are showing us the retail and restaurant communities feel the same way!”
“We’re thinking ‘laid-back luxe’ for the DNA of our tenant mix at Lido”, adds Heather Hollister, Sr. VP of Leasing for DJM. “With incomes and demographics like this, not only can we attract the finest merchants and restaurateurs out there, it’s imperative that we do so. We’re not looking for tenants who are over-exposed in the market, we are looking for a truly upscale and eclectic group of boutiques and eateries that will make this place a magnet and special destination not offered in Orange County currently.”
DJM’s approach is to create approximately 120,000 square feet of boutique retail, waterfront dining and creative office space, set in a pedestrian-friendly village setting. With the 50 boat-slip marina at the core of the property, the docks and decks allow an opportunity to upgrade the entire village and marina to attract upscale stores and restaurants to occupy desirable, waterside space.
Lido Island is home to almost 2,000 residences with home prices from $1.5 to $15 million, and the local area boasts some of the highest incomes and most picturesque ocean and bay front property in Southern California.
About DJM Capital Partners, Inc.
Founded in 1992 by D. John Miller, DJM Capital Partners, Inc. is a leading private equity real estate investment group that focuses on enhancing and increasing value on undercapitalized and underperforming real estate assets. Providing its own development, rebranding, leasing, and asset management services, the company’s expertise spans various product types. DJM’s West Coast portfolio is valued in excess of $1 Billion. Known for its aggressive growth strategy and opportunistic, entrepreneurial investment approach, DJM specializes in identifying commercial properties throughout California and deploying its skilled team to create value and provide attractive returns for investors and partners. Additional information is available at www.djmcapital.com.
DJM Capital Partners