Agile Properties Investment & Redevelopment, LLC 15333 Culver Drive Suite 340 #413 Irvine, CA 92604
Dear Scott,
Thank you for inviting us to respond to the RFP and for allowing us to showcase our unique ability to develop best-in-class neighborhood shopping centers. Valencia is the type of opportunity Regency is made for!
Our strengths are simple:
n No financing contingency. We are an all-cash buyer and builder. Our cost of capital is significantly less than our peers and we’re able to pass those savings directly to FivePoint in the form of additional sale price.
n Leasing. Our best-in-class in-house leasing team is ready to get to work! We have 41 shopping centers in Southern California, including two within 3 miles of the site. Furthermore, we’ve connected with every grocery tenant in the market and gathered substantial feedback. We have a letter of intent in hand from a national credit grocery store that will anchor the project and look forward to sharing our merchandising plan and findings with FivePoint.
n Long-term ownership. We are not “flippers.” We build our projects to last and plan to own the shopping center we build at FivePoint Valencia long-term. We look forward to a long and fruitful partnership with FivePoint.
n Regency is green . We were the first U.S. REIT and the second U.S. Corporation to issue a Green Bond for financing eligible green projects. Newsweek also named us one of America’s Greenest Companies.
Thank you again for your consideration, and we look forward to working with you and FivePoint on this project!
Sincerely,
John T Mehigan Senior Vice President, Investments - West
915 Wilshire Blvd , Suite 2200
Los Angeles, CA 90017
Ray Kayacan Vice President, Investments
213 553 2273 | johnmehigan@regencycenters.com
The Project
The Project: A Residential Amenity
PLACEMAKING
While our expertise is retail, we firmly believe that the best centers are those that actively engage with their neighborhoods. This destination will be inclusive, sustainable, and an enjoyable experience for merchants, shoppers, and guests.
Valencia is a unique destination
This project will include thoughtfully designed public spaces that encourage community gathering and interaction. The centerpiece fountain and surrounding plazas will serve as areas where residents and visitors can meet, relax, and socialize.
The Field at Commonwealth | A Regency Centers Place. | Chantilly, VA
The Project: A Community Connection
Connecting to the community is paramount
Pathways and connections to adjacent neighborhoods
will ensure that the center is a natural extension of the living spaces, enhancing the sense of community.
The design will be thoughtful, emphasizing a pedestrian-friendly environment with wide walkways and enhanced crosswalks.
ATMOSPHERE
Our properties reflect the communities they serve. We start with a vision and add relevant elements for the surrounding neighborhoods. Everything is designed to ensure it feels like an organic extension of the neighborhood.
Concept Rendering
Westlake Plaza | A Regency Centers Place. | Westlake Village, CA
The Project: Harmonious Merchandising
MERCHANDISING
We have been the owner-of-choice for some of the most significant new-market entrées. Our team will carry the unified vision of this property to source the best options to ensure the merchandising mix is one of several major draws to the neighborhood.
Built to last
Anchored by a state-of-the-art 52,000 SF grocery store, this vibrant center will serve daily needs while featuring a diverse array of dining establishments. This mix of essential services and upscale eateries ensures that residents of Mission Village, neighboring communities, and future FivePoint Valencia communities have access to a convenient, dynamic, and delightful shopping experience.
Village at La Floresta | A Regency Centers Place. | Brea, CA Concept Rendering
The Project: Center Design
PROPOSEDTRANSITHUB
The Project: Conceptual Merchandising Plan
MISSIONVILLAGEMAINSTREET
Farm House not included in GLA.
The Project: Timeline
Execution of Contract
July 1, 2024
End of Due Diligence Period October 1, 2024
Close of Escrow
December 31, 2024
Construction Begins June 1, 2025
Grand Opening October 1, 2026
Source of Funds
June 7, 2024
Scott Peterson
Agile Properties
15333 Culver Drive Suite 340 #413
Irvine, CA 92604
RE: FivePoint - Valencia
Dear Scott,
- Valencia will project with debt project.
Regency Centers will fund the acquisition and development of the FivePoint Valencia project with cash.
We will not need any third-party debt or equity to complete this project. Thank you.
Sincerely,
Michael Mas Regency Centers
Executive Vice President, Chief Financial Officer
Our fortress balance sheet is one of our key strengths. Regency Centers is an all-cash buyer and builder. There will be no financing contingencies.
$1.5B Line of Credit
$547M Projects Currently Under Construction $160M Cash Reserves
$4B+ Shopping Centers Developed Since 2000
Our financial strength enable a flexibility and strength not found elsewhere. Regency is the only company in the shopping center sector with an A3 credit rating from Moody’s.
Underwriting
Land $ 7,000,000
Due Diligence / Closing Costs $ 70,000
Land & Acquisition Cost Subtotal $ 7,070,000
Site Work $ 8,997,644
Building Shell $ 19,560,936
Placemaking $ 1,000,000
Tenant Improvements Allowance $ 3,318,750
Hard Cost Contingency $ 1,698,515
Hard Cost Subtotal $ 34,575,845 A&E $ 1,364,228
Testing & Inspection $ 150,000
Permits / Impact Fees $ 1,970,626
Consulting & Miscellaneous $ 565,758
Lease Commissions $ 1,157,590
Soft Cost Contingency $ 202,531
Development Overhead $ 972,326
Soft Cost Subtotal $ 6,383,059
Interest Carry $ 1,484,093 Total $ 49,512,997
Green Building
Environmental Stewardship
“We Are Responsible” is one of our core values at Regency. We believe it is our duty to balance purpose and profit, being good stewards of capital and the environment for the benefit of all our stakeholders.
We were the first U.S. REIT and the second U.S. Corporation to issue a Green Bond for financing eligible green projects. Newsweek also named us one of America’s Greenest Companies
Our commitment to sustainable practices proves that responsible investment will enhance our development projects and the communities they serve.
OUR APPROACH TO ENVIRONMENTAL STEWARDSHIP FOCUSES ON EIGHT STRATEGIC PRIORITIES
Greenhouse Gas Emissions Renewable Energy
Management
Charging
Efficiency
Change
Sample LEED-Certified Projects
LEED GOLD The Crossing Clarendon | Arlington, VA
LEED GOLD Granada Village | Granada Hills, CA
LEED GOLD Persimmon Place | Dublin, CA
LEED SILVER Balboa Mesa | San Diego, CA
LEED SILVER Village at La Floresta | Brea, CA
PURSUING LEED Oakley Shops at Laurel Fields | Oakley, CA
Relevant Experience
Oakley Shops at Laurel Fields
Oakley, CA • 79,886 SF PURSUING LEED CERTIFICATION
Relevant Project Experience
Oakley Shops at Laurel Fields
Oakley, CA • 79,886 SF
In the fall of 2023, Albertson’s selected Regency as their Preferred Developer for a property they owned in Northern California. We will break ground in August, and the project will include a solar array in the parking lot, marking the first time in Albertson’s history that they have included solar of this type on a ground-up project.
Additionally, the project will feature rooftop solar on the Safeway building and gas pad as well as four of the five other pads. In total, the project will feature >80k SF of solar with an output of 843 kW.
26K SF SOLAR ARRAY
VillageAtLaFloresta.com
Relevant Project Experience
Village at La Floresta
Brea, CA • 86,969 SF
Watch the Video!
Ground-up development in a master-planned community located on the desirable Imperial Highway. With a solid retail mix, center-sponsored Wi-Fi throughout, and topof-the-line restaurants, all anchored by a two-level Whole Foods Market, Village at La Floresta has something for everyone in the multi-generational community it sits.
VillageAtLaFloresta.com
Start: December 2014
Completion: June 2016
COMMUNITY ACCESS POINTS
Village at Tustin Legacy
Tustin, CA • 112,084 SF
ShopVillageAtTustinLegacy.com
Relevant Project Experience
Village at Tustin Legacy
Tustin, CA • 112,084 SF
At the core of Orange County’s master-planned Tustin Legacy community, The Village at Tustin Legacy provides a much-anticipated destination for daily needs, dynamic dining and desired services, adjacent to a 150,000 SF medical campus.
The center features outdoor patios connected by wide pathways, tall ceilings and windows set against deep steel-accented wood, accessible parking and convenient amenities.
ShopVillageAtTustinLegacy.com
Start: August 2016
Completion: December 2017
The Team
Vertically-Integrated Development Team
Regency’s in-house development team includes entitlement experts, construction management professionals, leasing, legal, and financial services. John Mehigan and Ray Kayacan will be your primary point of contact throughout the project, with Steve Felderman managing the project through construction. The Regency team will use project management tools and stay in constant contact with the sellers throughout the project to ensure transparency, efficiency, and speed.
Upon Stabilization, Regency plans to hold the project indefinitely. Taylor Vaughan, our Vice President and Market Officer for Southern California, will be your ongoing contact.
POINTS OF CONTACT
John Mehigan Senior Vice President Investments - West
Ray Kayacan Vice President Investments
Felderman Vice President Project Management
For this RFP response, we have engaged with AO Architects and Psomas.
Vaughan Vice President Market Officer
Taylor
Steve
Village at Tustin Legacy Groundbreaking
Your Local Regency Team
Nick Wibbenmeyer
Executive Vice President, West Region President BIO
John Mehigan
Senior Vice President, Investments - West BIO
Steve Felderman Vice President, Project Management BIO
Shane Fozdar Senior Project Manager
Ray Kayacan Vice President, Investments BIO
Matthew Glover Tenant Construction Manager
Dave McNulty Vice President, Financial Services BIO
Patrick Conway Managing Director, West Region BIO
Taylor Vaughan Vice President, Market Officer BIO
Regional Property Manager
Senior Leasing Agent BIO
Lindsey Cabral
Erin Saltzman
About Regency
National Reach, Local Expertise
Regency Centers began in 1963 with one property from one determined husband-and-wife team in Jacksonville, Florida. Their efforts brought the first regional shopping mall to the Southeast. Today, Regency is a collection of more than 480 places in nearly every major market across the nation. Each day, we work towards our mission of creating thriving environments for retailers and service providers to connect with surrounding neighborhoods and communities.
The Offer
915 Wilshire Blvd Suite 2200
Los Angeles, CA 90017
213 553 2273 RegencyCenters.com
June 7, 2024
Scott Peterson
Agile Properties Investment & Redevelopment, LLC 15333 Culver Drive Suite 340 #413 Irvine, CA 92604
RE: Offer to Purchase FivePoint Valencia Retail Site
NEC of Magic Mountain Parkway and Commerce Center Drive
Dear Scott,
Thank you for the opportunity to respond to the Request for Proposal for the FivePoint Valencia Retail Site. The team at Regency Centers is excited about this unique opportunity and we believe we are the perfect partner for you because of the following:
• No financing contingency. All cash buyer and developer.
• We are in receipt of a letter of intent from a national credit grocery store.
Vertically integrated with in-house experts in entitlement, leasing, and construction who are ready to get to work immediately. Below are the terms in which Regency Centers would like to move forward with a purchase of your property.
1. Property: Approximately 11.6 Acres at the NEC of Magic Mountain Parkway and Commerce Center Drive.
2. Purchase Price: The Purchase Price shall be Seven Million Dollars ($7,000,000).
3. Initial Deposit: A Two Hundred Fifty Thousand Dollar ($250,000) deposit in cash will be deposited in escrow, as and “Earnest Money” deposit, within three (3) business days following the mutual execution of the Purchase Agreement. The Earnest Money shall be refundable prior to the expiration of the Due Diligence Period (hereinafter defined), and non-refundable following the expiration of the Due Diligence Period except in the event of a failure of a condition to close set forth in the Purchase Agreement or in the event of a Seller default. The Earnest Money shall be applied to the Purchase Price at the Closing. In the event of Regency’s default under the Purchase Agreement, the Earnest Money shall constitute liquidated damages, which shall be the sole and exclusive remedy of Seller.
4. Due Diligence: Buyer will have 90 days to perform Due Diligence including
a) Title: Buyer shall have the right to review and approve a current preliminary Title Report and all exceptions thereto.
b) Physical Inspection: Buyer shall have the right to conduct such soil tests, engineering studies and such feasibility and other studies regarding the condition of the Property as it considers prudent.
c) Environmental: Buyer shall have the right to conduct an environmental inspection of the Property as Buyer determines is prudent
915 Wilshire Blvd Suite 2200
Los Angeles, CA 90017
213 553 2273 RegencyCenters.com
d) Governmental Regulation: Buyer shall have the right to meet in person with City Officials and Seller to discuss the Entitlements process and strategy.
e) Site Plan: Buyer shall have the right to submit a site plan and any other necessary items to the County of Los Angeles, CA.
5. Closing: “ Close of Escrow” shall occur ten (10) days after the date the phased final map is recorded and site plan approval.
6. Brokerage: Buyer has not engaged a real estate broker in this transaction
7. Good Faith and Upon Seller’s acceptance of this Letter of Intent, the parties agree to Exclusivity: work in good faith to negotiate and execute a Purchase Agreement. Seller agrees that until thirty (30) days after the earliest of (i) the acceptance of this Letter of Intent by Seller, or (ii) the written termination of this Letter of Intent by Regency, Seller will not negotiate or accept any offers to purchase the Property or any part thereof from any other person or entity. The provisions of this paragraph are intended to be and shall be binding upon the parties.
Except with respect to Section 7 above, it is expressly understood and agreed by both parties that the foregoing proposal constitutes an outline for discussion purposes only with respect purchasing the above-referenced property and does not create any contractual rights or obligations on the part of either party. Significant additional terms and conditions of the purchase agreement are yet to be negotiated and neither party is obligated to continue such negotiations. Except with respect to Section 7 above, in no event shall any contractual rights or obligations exist until such time as a purchase agreement is fully executed and delivered by both parties. Accordingly, the parties agree not to rely on the terms of this letter and that any obligation incurred, funds spent and business opportunities lost are at each party’s sole risk.
If the foregoing outline of the basic terms and conditions of the contemplated transaction are acceptable as the basis for negotiations, please have the appropriate party execute the enclosed copy of this letter and return it to the undersigned. We look forward to working with you to successfully complete this transaction.
Very truly yours,
REGENCY CENTERS ACQUISITION, LLC
John T Mehigan Senior Vice President, Investments - West
