Torrance Retail Hub's $108.5M Sale Highlights Niche Investment Win

TORRANCE, CA – January 06, 2026 – A recently revitalized Torrance retail center has been sold for $108.5 million in a deal that underscores the power of strategic capital and the growing appeal of niche, grocery-anchored properties. The sale of Village Del Amo, a 166,365-square-foot shopping hub, marks the largest retail transaction in the South Bay market this year and a successful exit for investor Arc Capital Partners.

The transaction concludes a focused, two-year value-add play orchestrated by operating sponsor DJM Capital Partners, which was fueled by a preferred equity investment from Arc. The property, now 92.3% leased, was sold to an undisclosed private buyer represented by NAI Capital Commercial. This sale not only generated a significant return but also serves as a compelling case study in transforming legacy retail assets into thriving, community-focused destinations.

A Blueprint for Modern Revitalization

Originally constructed in 1980, Village Del Amo underwent a comprehensive transformation that concluded in 2024. DJM Capital Partners, which has owned the asset since 2004, spearheaded a value-add business plan designed to reposition the center into a premier shopping and dining destination for Torrance and the affluent surrounding South Bay communities.

The cornerstone of the revitalization was the modernization of the property's physical look and tenant mix. The plan included a property-wide design update and the strategic development of multiple restaurant pad sites to create a vibrant "restaurant row." This effort attracted high-quality establishments and activated previously underutilized portions of the 15.9-acre site.

At the heart of the center's appeal is its anchor, Hannam Supermarket, a leading Korean grocer. The success of the newly built Hannam store validated the strategy of leaning into community-specific needs. The anchor is complemented by a strong roster of national and regional tenants including BevMo, Benihana, Starbucks, Tendergreens, and The Learning Experience, creating a diverse and resilient tenant ecosystem. Located at the highly trafficked corner of Hawthorne and Torrance Boulevards, the center benefits from the daily passage of approximately 99,000 vehicles, a figure that translates to robust and consistent consumer foot traffic.

“DJM executed the business plan extremely well, and we’re proud to have supported this successful outcome,” said Quincy Allen, Co-Founder and Managing Partner of Arc Capital Partners, in a statement announcing the exit.

The Strategic Role of Flexible Capital

The successful repositioning of Village Del Amo was made possible by a crucial recapitalization in November 2022. Arc Capital Partners provided a preferred equity investment, a form of flexible capital that sits between traditional debt and common equity. This structured financing gave DJM the balance sheet support and operational flexibility needed to execute its ambitious, multi-faceted business plan without the constraints of more rigid lending structures.

This type of investment is a hallmark of Arc's strategy. The firm specializes in providing tailored equity solutions for complex situations, enabling experienced operators to unlock hidden value in middle-market assets.

“This investment reflects Arc’s focus on providing flexible equity solutions that support value creation alongside best-in-class operators,” noted Neville Rhone, Managing Partner at Arc Capital Partners. The capital injection occurred during a critical transitional period for the asset, allowing the renovation and leasing plan to be fully realized, culminating in the high-value sale.

The partnership was lauded by the operating sponsor. “We’re grateful to Arc for their partnership and collaboration throughout the life of the investment, and proud of what the team accomplished at Village Del Amo,” said John Miller of DJM Capital Partners.

Conviction in Ethnic Grocery-Anchored Retail

The Village Del Amo deal is more than a successful one-off transaction; it is a powerful validation of Arc Capital Partners’ investment thesis in ethnic grocery-anchored retail. The firm has long held a conviction that these centers represent a uniquely resilient and high-performing asset class, particularly in diverse, high-growth markets.

This niche is thriving due to powerful demographic and cultural tailwinds. The increasing diversity of the U.S. population, particularly the growth of Asian and Hispanic communities, creates a durable customer base for grocers like Hannam Supermarket. Furthermore, a broader "foodie culture" and a post-pandemic rise in at-home cooking have drawn a wider range of consumers to explore global cuisines, transforming ethnic grocers from niche stores into mainstream destinations.

Industry data supports this strategy. The U.S. ethnic food market was valued at over $27 billion in 2023 and is projected to surge to more than $52 billion by 2032. Grocery-anchored centers have consistently demonstrated superior stability compared to other retail formats, maintaining high occupancy rates even during economic downturns. Their anchor tenants generate non-discretionary, regular foot traffic, which in turn supports the health of the entire center and reduces tenant turnover.

A Strong Market Confirms the Vision

While the strategic execution was paramount, the sale's success was also bolstered by strong fundamentals in the local real estate market. The South Bay has remained a target for institutional investors, who have shown a clear resurgence of interest in necessity-based retail assets located in dense, affluent areas.

At the time of the sale, the retail vacancy rate in the South Bay submarket stood at a healthy 6.9%, outperforming several other Los Angeles submarkets. The region's strong demographics, thriving commercial base, and limited new retail construction create favorable conditions for owners of existing, well-positioned centers. The 6.12% capitalization rate achieved on the Village Del Amo sale reflects intense investor demand for stable, income-producing retail properties with a proven track record. The transaction demonstrates that with the right strategy, capital, and location, even legacy retail properties can be transformed into highly sought-after assets that generate exceptional value.