The grocery-anchored asset sold for $51M, a 29% increase over purchase
COSTA MESA, Calif., Jan. 20, 2026 /PRNewswire/ -- DJM, an Orange County–based private equity real estate and development firm, has announced the sale of Gateway Center, a neighborhood retail center located in Mission Viejo, California. The property sold for $51 million, representing a 6% capitalization rate on net operating income. At the time of sale, Gateway Center was 97% leased. The transaction closed all-cash with an institutional buyer.
Completed in 1979, Gateway Center boasts a strong mix of daily-needs and service-oriented tenants. The center is leased to a combination of national and local retailers, including Starbucks, Baja Fresh, Saddleback Family & Urgent Care, Chase, and others. The center spans 7.35 acres and is located at 24000 Alicia Parkway in the heart of Mission Viejo, an affluent community in South Orange County. Positioned along highly trafficked Alicia Parkway, the property benefits from exposure to more than 78,000 vehicles per day, offering exceptional visibility and accessibility.
DJM acquired Gateway Center in December 2021 from Gerrity Group for $39.5 million, at which time the property was 83% occupied. Following the acquisition, DJM implemented a targeted repositioning strategy that included new leases with Pacific Dental, select restaurant and boutique fitness tenants, alongside property improvements such as enhanced landscaping, refreshed paint, and the introduction of a weekly community farmers market. These initiatives increased occupancy from 83% at acquisition to 97% at sale while strengthening the center's merchandising and community presence.
"Our investment thesis focused on high-quality, densely populated suburban markets like Mission Viejo that consistently support retail demand, strong occupancy, and rental growth" said Rob Miller, Chief Executive Officer of DJM. "Gateway Center is a great example of how disciplined capital deployment, thoughtful leasing, and strategic asset management can meaningfully enhance long-term value."
This transaction reflects DJM's 34-year history of deploying capital with discipline and conviction across California retail markets, consistently driving leasing momentum and long-term value creation. As the firm continues to scale its platform, DJM remains focused on acquiring and developing well-located retail and mixed-use assets that serve everyday consumer demand in high-quality markets.
Press Contact:
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SOURCE DJM
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