Arc Capital Partners and U.S. Realty Partners Announce the Recapitalization of Murrieta Town Center

LOS ANGELES–(BUSINESS WIRE)–Arc Capital Partners (“Arc”), an institutional real estate owner and investment manager focused on middle-market capital solutions, announced today that it has completed an investment in the recapitalization of Murrieta Town Center, a 380,000-square-foot, grocery-anchored retail center located in Murrieta, California. Arc partnered with U.S. Realty Partners (“U.S. Realty”), replacing the prior joint venture partner.

Murrieta Town Center is a leading community retail destination serving southwest Riverside County and the Inland Empire. The center is anchored by Amazon Fresh and features a national tenant mix that includes Marshalls, Ross, Burlington, Five Below, Dollar Tree, and Floor & Decor. The center benefits from prominent visibility along Interstate 215 and serves a rapidly growing residential trade area supported by strong daily-needs retail demand.

Under prior ownership, more than $45 million was invested in capital improvements and remerchandising initiatives to modernize the center, enhance the tenant mix, and reposition the asset. As a result, Murrieta Town Center is approximately 90% leased today and continues to attract national and regional retailers. Arc’s investment reflects its focus on providing structured equity and recapitalization capital to support best-in-class local operators through the next phase of execution.

“This investment reflects the type of partnership we look to build – where our capital supports a clear long-term vision and provides flexibility to execute,” said Neville Rhone, Co-Founder and Managing Partner of Arc Capital Partners. “Murrieta Town Center serves a growing community, and we believe the center’s scale, tenant mix, and location position it well for strong performance.”

Quincy Allen, Co-Founder and Managing Partner of Arc Capital Partners, added, “Grocery-anchored retail continues to demonstrate resilience, particularly when it is well-located and actively curated. U.S. Realty has done an excellent job repositioning the center, and we are pleased to support the next chapter of the business plan.”

Jay Kerner, CEO of U.S. Realty Partners, said, “Arc was a collaborative and pragmatic partner throughout the recapitalization process. Their ability to underwrite the asset with conviction and structure the investment thoughtfully allowed us to complete the partnership transition efficiently and remain focused on driving long-term value.”

Built in 1987 and most recently renovated in 2021, Murrieta Town Center is situated on more than 36 acres at the intersection of Interstate 215 and Murrieta Hot Springs Road and includes nearly 50 tenants. Arc’s investment underscores its role as a long-term capital partner to experienced retail and mixed-use operators navigating recapitalizations, partnership transitions, and value-add business plans.

About Arc Capital Partners

Arc Capital Partners is an institutional real estate owner and investment manager specializing in middle-market opportunities across high-growth Sunbelt U.S. markets. Founded in 2013, Arc invests in retail, multifamily, industrial, and mixed-use assets that benefit from durable demographic demand and high barriers to entry. The firm focuses on complex situations where thoughtful structuring, active ownership, and partnerships with experienced operators can drive value within the communities they serve. Led by principals with more than $15 billion in transaction experience, Arc seeks to generate repeatable alpha by investing across the capital stack through recapitalizations, preferred equity, and joint ventures. For more information, please visit www.arccapitalpartners.com.

About U.S. Realty Partners

U.S. Realty Partners is a privately held real estate investment company specializing in the acquisition, asset management, development, and redevelopment of quality retail properties located in strategic metropolitan areas of the western United States. We focus on anchored retail properties in markets with strong demographics and achieve competitive risk adjusted returns for our investors and partners. Our current portfolio includes 15 retail properties totaling over 2.2 million square feet of gross leasable area. We take pride in our vast shopping center experience, extensive market knowledge, disciplined underwriting, and an excellent track record of efficient execution. For more information, please see us at www.usrpartners.com.

Contacts

Ron Demeter, Vectis Strategies

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