LOS ANGELES (February 29, 2024) – Arc Capital Partners (Arc) and Belay Investment Group (Belay) announced today that they have successfully exited their preferred equity investment in Lido Marina Village (Lido), a 100% leased, 106,000-square-foot mixed-use property located in Newport Beach, CA.
The transaction validated the significant value created by DJM Capital Partners (DJM), which has owned and operated the property since 2013. Arc, through its partnership with Belay, provided capital for DJM to complete a recapitalization of the construction loan during the COVID-19 pandemic.
“DJM was excited to partner with Arc through a turbulent time in the capital markets,” said Lindsay Parton, DJM’s President. “The principals of our firms have a long-standing relationship, and we plan to target similar opportunities in the future throughout the Western US in dynamic high barriers to entry locations.”
Built in 1971 and renovated in 2016 and 2022, Lido draws 1.5 million visitors annually with dramatic water views, boutique retail, and high-end dining within a pedestrian-friendly village. The property, as a result of DJM’s rebranding, consistently attracts upscale stores and restaurants like Nobu, Zinque, Malibu Farm, and Aesop.
“Arc was thrilled to partner with DJM to invest in this one-of-a-kind mixed-use environment that targets a perfect blend of lifestyle in a coastal setting,” said Quincy Allen, Co-Founder of Arc.
“Lido was reimagined from an underinvested seaport village to an incredible regional draw. We were proud to support it despite extremely challenging capital markets,” added Neville Rhone, Co-Founder of Arc.
“Our favorable exit from Lido represents the third successful realization in Belay’s programmatic relationship with Arc, and we continue to be impressed by their propensity for identifying compelling opportunities to capture value and elevate the performance of our investments through alternative strategies and value-add programs” said Eliza Bailey, Belay’s Co-Founder, CEO & CIO.
“We are delighted with the positive outcome of our preferred equity investment in Lido. This investment was structured during the depths of the COVID-19 pandemic amidst great uncertainty, which speaks to the team’s creative problem-solving ability to generate a strategic solution for all parties. Additionally, DJM’s skilled leasing and top-notch community programing further enhanced the value to investors” said Jake Loughridge, Managing Director at Belay Investment Group.
The refinance and recapitalization was orchestrated by Bryan Ley of JLL and his team of advisors included Jeff Sause, Geoff Tranchina, Gleb Lvovich, Tim Kuruzar, Daniel Tyner, and Alex Olson.
About Arc Capital Partners
Arc Capital Partners is an institutional real estate owner and investment manager dedicated to redefining real estate in mixed-use environments. Founded in 2013 by principals with over $10 billion of transaction experience, Arc targets middle-market investments in high barrier-to-entry Sunbelt markets with strong demographic demand fundamentals. Arc is a minority-owned firm that pursues preferred equity, joint venture, and direct investments with both compelling value-added/opportunistic returns and downside protection. For further information, please visit www.arccapitalpartners.com.
About DJM
DJM is a private equity real estate owner, operator, and developer based in California. DJM creates long-term value by transforming real estate to meet the 21st-century demands of consumers, retailers, and office users. With a focus on placemaking, DJM leverages design, development, and best-in-class management to create places where people thrive. DJM is represented by a current portfolio of approximately four million square feet with an estimated portfolio value of $2 billion. For more information, please visit: www.djmcapital.com.
About Belay Investment Group
Belay Investment Group, LLC is a real estate investment management firm that pursues equity and debt investment opportunities across all property types, primarily middle-market infill properties in urban/suburban transit hub markets, on behalf of its institutional investors. Belay implements its investment strategies through long-term programmatic relationships with high caliber, local operating partners and sector specialists. The firm has earned a reputation in the industry for supporting the growth and development of operators (including diverse firms), beyond providing investment capital. Visit www.belayinvestmentgroup.com for more information.