California-based private equity real estate and development player DJM’s portfolio keeps getting larger.
The firm has acquired Long Beach Exchange (LBX) in partnership with PGIM Real Estate from Newport Beach, Calif.-based Burnham Ward Properties. DJM will handle management, leasing and marketing.
LBX is a 26-acre property anchored by a Whole Foods with retail tenants including TJ Maxx, Nordstrom Rack, Ulta and Old Navy. It also has The Hangar, a 17,000-square-foot food hall fashioned in the style of a vintage aviation hangar that offers a range of small, artisanal food vendors and boutique retailers.
DJM has been steadily adding to its portfolio of open-air retail over the last few years, acquiring L.A.’s Hollywood & Highland complex, soon to be renamed Ovation Hollywood, which is adjacent to the Dolby Theatre and TCL Grauman’s Chinese Theatre; Lido Marina Village in Newport Beach, which has Elyse Walker, LoveShackFancy and Stoney Clover stores, among other tenants, and the 853,000-square-foot Bella Terra in Huntington Beach, Calif.
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In addition, DJM was brought in by Invesco Real Estate as a partner to redevelop the outdoor mall Runway in the Playa Vista, Calif., neighborhood known as Silicon Beach.
“Over the next year, we plan to double the square footage of our assets under management and focus on aggressive growth within our company,” said Lindsay Parton, president of DJM. “We have positioned ourselves for the future with our team, and are currently working through a number of deals that will reflect the true ethos of DJM’s mission to create places where people and communities thrive.”
“Although COVID-19 undoubtedly impacted retail across all sectors, we’re now experiencing a tremendous return to growth across our entire portfolio, with foot traffic and sales numbers surpassing even pre-pandemic figures,” said Chad Cress, chief creative officer at DJM. “This rebound, which reinforces the ever-changing nature of retail, is due largely in part to the outdoor nature of our properties as well as thoughtful community programming and relevant, region-specific merchandising. Long Beach Exchange is a fantastic addition to the DJM portfolio and we look forward to shaping the property into the best version of itself.”
“We have seen firsthand the transformation DJM has created at Bella Terra,” said Tim Hennessey, managing director at PGIM Real Estate. “We are extremely pleased with the value that DJM and PGIM Real Estate were able to add to the portfolio and deliver an excellent outcome for our investors even during these unprecedented times. We are excited to continue our work together at Long Beach Exchange.”
“Long Beach Exchange is a perfect example of what retail should look like in the future,” said Scott Burnham, chief executive officer and partner at Burnham Ward Properties. “This iconic property promotes an experiential environment that encourages shopping through community and experiences by innovative property development. The continued success of LBX during these unprecedented times is a true testament of its consumer appeal, which has ensured that the center will continue to grow and thrive. DJM and its partners will be great stewards for this asset going forward.”