Developer gets financing for new O.C. Costco

Developer gets financing for new O.C. Costco January 30th, 2012, 10:49 am · · posted by Jon Lansner

Sketched of the planned Costco at Bella Terra

Click to see demolition to start Costco construction; photos by Sam Gangwer

Commercial real estate investment bankers George Smith Partners arranged $16 million in construction financing for DJM Capital Partners to clear retail space for Costco at the Bella Terra shopping center in Huntington Beach.

Costco’s 30-year ground lease required DJM to create a “construction ready” pad for a new Costco.

Construction included DJM demolishing a 120,000-square-foot former Montgomery Ward‘s and an 80,000-square-foot former Mervyns plus adding utility lines and bays for gasoline tanks.

DJM is also building a 467-unit apartment complex adjacent to the shopping center that’s already sold to landlord UDR.

Smith Partners’ Steve Bram: “Although both the client and the property are very solid, this particular loan presented a challenge due to the state of the current commercial real estate industry. Construction financing, especially for retail centers, is not easy to achieve in today’s economic climate.”

Learn about 9 store openings, 5 closures in O.C.

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Developer gets financing for new O.C. Costco