Plaza Pacifica Trade: A Promising Investment in Coastal Orange County Retail

Commercial real estate continues to thrive in Orange County, particularly in the grocery-adjacent retail sector. Recently, a noteworthy transaction unfolded as a 23,679-square-foot shopping center, known as Plaza Pacifica in San Clemente, sold for $21 million. This deal reflects current market trends, highlighting the appeal of grocery-anchored properties in coastal markets. In this article, we delve into the details surrounding this transaction and its significance within the broader retail landscape of Southern California.

Recent Sale Details

The sale of Plaza Pacifica involved a New York-based entity as the seller, represented by Donald MacLellan and Alec Patterson of Faris Lee Investments. Closing on December 31, 2025, the property fetched a selling price of approximately $887 per square foot. This trend suggests a heightened investor interest in retail properties that strategically align with grocery businesses—a significant advantage given current consumer spending habits. The buyer, a regional developer and property management firm known as Investment Concepts, is looking to expand its portfolio of retail and multifamily assets across the Southwest.

Strategic Location and Property Features

Plaza Pacifica is located at 979 Avenida Pico and spans a 2.43-acre site, built in 2002. The center operates as a shadow-anchored retail development, adjacent to a recently renovated Pavilions supermarket—a decision that adds value to the investment. The center boasts a diverse tenant mix, including established brands such as Board & Brew, Baja Fresh, Verizon Wireless, and Navy Federal Credit Union, contributing to a net operating income of $1.16 million annually. This dynamic underscores the importance of prime location and tenant diversity in ensuring long-term revenue stability.

Market Conditions and Pricing Strategy

When Plaza Pacifica was initially listed in September 2025, its asking price was set at $23.25 million, equating to $982 per square foot, with a 5 percent capitalization rate based on its net operating income. The final sale price of $21 million indicates a 9.7 percent discount from the asking price. Notably, the property was offered with an assumable loan featuring a 4.4 percent fixed interest rate—an attractive financing option allowing the buyer to secure favorable long-term debt in a rising interest rate environment.

Demographic Appeal

The demographics surrounding San Clemente bolster the asset’s investment potential, showing an average household income exceeding $195,000 within a three-mile radius. With nearly 100,000 permanent residents and 35,000 daytime workers in the trade area, this robust community profile enhances Plaza Pacifica’s attractiveness to investors. Additionally, the center’s proximity to a 299-acre business park with a 98 percent occupancy rate signifies ongoing demand for retail services in the region.

Investment Trends in Grocery-Anchored Retail

Grocery-anchored retail centers remain a focal point for investors, particularly in affluent coastal markets where household spending is stable and reliable. These properties typically require lower per-square-foot acquisition costs compared to those where the grocery operator is a direct tenant. The shadow-anchor structure allows for rental income from inline tenants, supporting overall revenue stability while minimizing risk. As a result, the Plaza Pacifica acquisition aligns perfectly with Investment Concepts’ objective to strengthen its footprint in Southern California’s evolving retail landscape.

Conclusion

The transaction of Plaza Pacifica in San Clemente represents more than just a sale; it underscores the resilience of grocery-adjacent retail properties in Orange County. With its strategic location, diverse tenant mix, and favorable market conditions, the center exemplifies why investors are increasingly drawn to grocery-anchored assets. As Investment Concepts continues to expand its regional shopping center holdings, this acquisition is poised to contribute significantly to their portfolio’s success and stability in the evolving retail market.