The developer, Newport Beach-based Civic Partners, has now stuck a deal with New York-based real estate investment trust Regency Centers for $34 million financing. Regency will act as co-developer of the 37-acre project bounded by Vista Village and Lado de Loma drives and South Santa Fe Avenue.

A Lowe's Home Improvement warehouse broke ground in May near the Vista Village redevelopment project. Although not within the redevelopment project area, the store will serve as a badly needed anchor for the project.

Civic Partners has proposed retail shops, restaurants and a movie theater to go with Lowe's to the south. To the north is the city's revitalized Downtown. Civic Partners took over the project, one of the county's oldest dormant redevelopment proposals, from DDR Oliver McMillan about two years ago.

Lowe's, the world's second largest home improvement retailer, is opening its third store in San Diego County. The 160,000-sf store is expected to open this year or early next year. Work within the redevelopment project area, which will include a Krikorian Theater movie house, could begin in August, the developers say.

The first 135,000 sf of the project will take about a year to build and would be followed shortly by a second 83,000-sf phase that includes retail shops and restaurants. Phase one tenants include Krikorian, Staples office supply, Subway Sandwiches, Coldstone Creamery, Ten Perfect Nails, La Salsa Restaurant and others.