DJM Capital and PGIM aim to plant a 300-unit apartment complex at a shopping center they own in Huntington Beach.
The San Jose-based developer and the real estate arm of Prudential Financial, based in New Jersey, have proposed the six-story building at Bella Terra at 7777 Edinger Avenue, the Commercial Observer reported.
The Orange County complex would require demolishing a 149,000-square-foot store occupied by Burlington Coat Factory and a 33,000-square-foot retail store next door.
Plans call for a U-shaped building of four and six stories with 300 apartments and 25,000 square feet of ground-floor shops and restaurants, according to a rendering.
The powder blue and gray complex would contain one floor of shops, topped by a terrace deck, within the area that normally contains a courtyard. Another rooftop terrace would allow residents to overlook the mall.
Construction is set to begin at the end of next year, with completion expected in early 2026, according to the Observer.
DJM bought the 852,000-square-foot shopping center at the 405 Freeway and Beach Boulevard in 2005 for an undisclosed price.
The shopping center, once known as the Huntington Beach Mall, was renamed Bella Terra and redeveloped in 2019. DJM replaced an underused amphitheater with new shops and restaurants, and added a performing stage, lawn and beer-and-wine garden.
In 2015, PGIM paid nearly $289 million for a 75 percent stake in Bella Terra, which reported $121 million in taxable sales for the 12 months ending June 2021, according to the Orange County Business Journal.
PGIM and DJM are also partners at Long Beach Exchange, a 266,000-square-foot shopping center they bought for nearly $160 million early this year.
DJM Capital teamed up with Gaw Capital Partners in 2019 to buy the 463,000-square-foot Hollywood & Highland Center in Hollywood for $325 million. They renamed the outdoor mall Ovation Hollywood.
DJM also has stakes in Lido Marina Village in Newport Beach, Pacific City in Huntington Beach and Runway, an outdoor mall in Playa Vista.
In March, the real estate investor picked up four shopping centers from Sonoma County to San Diego, paying $125 million for two in Huntington Beach and one in Petaluma. The price paid for a fourth shopping center in San Diego was not disclosed.
In January, the company bought Gateway Center, a 79,000-square-foot, nine-building retail center in Mission Viejo for $29.5 million.
— Dana Bartholomew
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