Joint Venture Formed to Manage Pacific City

HUNTINGTON BEACH, CA— TIAA Global Asset Management’s real estate division and DJM Capital Partners , say they have formed a joint venture to own and manage the Pacific City Shopping Center , a high-profile destination lifestyle center that DJM Capital Partners developed and completed here in December 2015. TIAA has acquired a 70% stake in the class-A, 190,900 square-foot outdoor retail center on Pacific Coast Highway, with an affiliate of DJM Capital Partners retaining an approximate 30% stake. DJM Capital Partners’ prior partner, a private investor, sold its interest to TIAA. DJM Capital Partners was advised in the transaction by Eastdil Secured .

Pacific City is a class-A, 190,900-sf retail center on Pacific Coast Highway that was completed in December 2015.

DJM Capital Partners will continue to lead the property management, marketing, events programming and leasing at Pacific City, which has quickly evolved into one of Southern California’s most exciting centers, encompassing new restaurant and retail concepts, LOT 579 (a modern take on the artisan food hall) and an incredible ocean view location across from “Surf City’s” most famous beach. “The new partnership between DJM Capital Partners and TIAA is designed to successfully own, operate and evolve Pacific City for many years to come,” said Eric Sahn , chief financial officer for DJM Capital Partners. “Our strategic efforts will reinforce Pacific City’s prime position in the market, expanding our customer base, our tenants’ sales and the dynamic brand of Pacific City for years to come.” Noteworthy Pacific City tenants to-date include a 30,000+ square-foot Equinox fitness club and such national retailers as H&M , Free People , Sephora , and M.A.C. Cosmetics . On the restaurant front, Pacific City is drawing boldface names including Brent Bolthouse’s Bungalow , a new concept from renowned restauranteur Jed Sanford called Bluegold , and exciting new concepts for the region, including Ola Mexican Kitchen , St. Marc , Ways & Means Oyster House , and others. “Pacific City is aligned with our vision for the types of retail investments that will flourish in the future,” said Michael Boss of TIAA Global Asset Management’s west coast real estate team. “Top-quality malls have historically been strong and stable performers with high NOI growth and low volatility compared to other property sectors. The retail landscape may be changing, yet assets like Pacific City will continue to attract consumers looking to enhance their shopping experience with dining and entertainment options.  This property’s contemporary design with ocean views, communal outdoor spaces and a public market featuring restaurants and artisanal food vendors provides a unique environment that will draw visitors and sustain the investment over the long-term.” Since acquiring the site in 2012, DJM Capital Partners managed all entitlements, development, design, construction, leasing, marketing and property management for Pacific City in Huntington Beach, which opened its doors in late 2015. DJM’s approach to development is evident in the award-winning design of the lifestyle destination, the impressive roster of tenants, the firm notes. “Working with our new partners at TIAA, DJM Capital Partners will continue to drive the growth and evolution of Pacific City as one of California’s most successful destinations,” said John Miller , founder and CEO of DJM Capital. “Our creative and focused development and leasing efforts at Pacific City are emblematic of DJM Capital Partners’ approach to effective real estate investment. The performance of the center is powerful validation of our ability to identify unique properties, provide skilled asset management, and create significant value through the creative development process. For us, the work is only beginning as we take Pacific City to greater and greater heights.” TIAA Global Asset Management provides investment advice and portfolio management through Teachers Insurance and Annuity Association (TIAA) and more than a dozen affiliated registered investment advisers. Collectively managing $889 billion in assets , the business provides access to innovative investment strategies through expertise that spans traditional and alternative asset classes, generating new investment opportunities for clients through a wide array of vehicles including funds, customized strategies and solutions. DJM Capital Partners provides private equity investment, development and asset management services within the real estate sector.  With core strength in retail combined with expertise in office, industrial and residential product types, DJM Capital Partners’ superior market knowledge and strategic acquisition of undervalued assets is represented by a current portfolio of more than two million square feet. In addition to Pacific City, DJM is developing Lido Marina Village , an upscale waterfront lifestyle destination in Newport Beach . DJM Capital Partners’ retail portfolio is valued in excess of $1 billion.