Dealmaker: Paragon, Canyon Partners Acquire California Retail Center for $15M

Paragon Commercial Group LLC, El Segundo, Calif., and Canyon Partners Real Estate LLC, Los Angeles, acquired Village Center, a 92,400-square-foot shopping center in Orange County, Calif., for $14.8 million.

The acquisition marked the eighth investment completed by Paragon in a joint venture with Canyon Catalyst Fund, the CalPERS real estate program managed by Canyon. It represented Paragon’s third retail acquisition in the last nine months.

Developed in 1965 and owned by the same family until Paragon’s acquisition, the multi-tenant shopping center occupies the corner of Magnolia Street and Talbert Avenue in the city of Fountain Valley. Village Center is nearly fully occupied with tenants including Big Lots, Rite-Aid and Bank of America. Sprouts Farmer’s Market will join as a new anchor tenant later this year. In connection with the new grocery store, Paragon said it will institute an extensive capital improvement program to modernize the shopping center, which has not been significantly updated in more than 50 years.

Jim Dillavou, Principal with Paragon, said the firm’s retail portfolio demonstrated that daily needs-based retail remains a good investment during the pandemic, unlike some other retail subcategories.