Retail Roundup: Bay Area Malls Add New Tenants, Complete Renovations
Despite ongoing troubles in retail, various Bay Area shopping centers have added national and local retailers to their tenant lineups. Many Bay Area shopping centers also have been undergoing massive renovations to turn their tired mall layouts into thriving entertainment centers with experiential retail, family-oriented offerings and events to bring people into the centers. As more residents have moved into more affordable cities, many new retail centers are being built to meet additional demand as well.
Check out the latest news from several Bay Area shopping centers below:
Santana Row (San Jose)
Federal Realty Investment Trust’s 1.7M SF Santana Row added several retailers and restaurants in the last few months. Native Shoes opened its first U.S store at the mixed-use development, which includes office and housing. Fjallraven, a Sweden-based outdoor retailer, opened its third California store in June, while Japanese restaurant Ozumo opened in May. Everything But Water and Soul Cycle also opened in May. A pop-up Hello Kitty Mini Café also recently opened at Santana Row.
In addition to over 50 shops and 30 restaurants, Santana Row has 376K SF of office, a movie theater, 615 apartments, 219 condos and a boutique hotel. The developer also may turn a Best Buy store into a 60K SF office and has plans to add a 300-unit apartment complex.
The Shops At Hilltop (Richmond)
LBG Real Estate Cos. will add 99 Ranch Market to The Shops at Hilltop, formerly known as Hilltop Mall, a 1.2M SF shopping center the developer acquired in 2017. The roughly 32K SF Asian supermarket store will have an 11K SF food court and join existing anchors Macy’s, Sears, Walmart and 24 Hour Fitness.
The new tenant is part of the developer’s re-merchandising efforts to improve the once-dying mall into a multicultural shopping and entertainment destination.
The developer plans to add a 300K SF outlet shopping component, expand the collection of food and beverage concepts with a focus on Asian cuisine and add family-friendly entertainment and services. Its strategy includes updating community gathering spots, major interior and exterior renovations, new and dynamic wayfinding improvements and extensive special events programming.
The shopping center, which is close to Interstate 80, will soon be accessible via ferry service to launch in October.
In-place zoning at the 77-acre Hilltop Mall Road site also will allow for limited-use business hotels, creative coworking office space, conventional or medical office space and residential uses.
Stonestown Galleria (San Francisco)
GGP plans to break ground on its renovations of a former Macy’s at Stonestown Galleria in August that will include a roughly 46K SF Whole Foods on the second floor and a 72K SF sports retailer. GGP bought the 280K SF building from Macy's for $40M in 2017.
The building will have 10 small to midsize retail spaces, up to four restaurants and a 12-screen theater on the third level, SocketSite reports. The renovations are expected to be completed July 2020.
The Shops at Livermore
Property owner Johnson Himsl and partner Redmill Capital are nearing the end of construction, which began in May, at the new 11K SF mixed-use retail center in Livermore. The 13-acre shopping center, which is across from the San Francisco Premium Outlets, is expected to open Oct. 9.
Anchor tenants at the center will include Ulta, Ross, Kirklands, and Crate and Barrel, according to Johnson Himsl Property Development Assistant Emma Himsl. Additional tenants include Panda Express, Simmer Huang, AT&T and Subway. The center is about 70% leased and has spaces ranging from 1K SF to 9,200 SF available.
The center is expected to serve the local population of about 360,000 people with median income of $115K to $130K. While Colliers International managed previous leasing efforts, Johnson Himsl’s Emma Himsl and portfolio manager Robert Himsl will monitor the remaining leasing. Shames Construction is the general contractor and American National Insurance Co. provided the construction loan.
The Streets of Brentwood
Fairborne Properties purchased the 358K SF The Streets of Brentwood for about $87.5M from DRA Advisors in a transaction brokered by NKF Capital Markets. The shopping center, which includes a 14-screen AMC Theatre, DSW, Ulta and Sprouts Farmers Market, spans 49 acres. The sale included fully entitled development parcels on 12 acres that can support an additional 80K SF of retail as well as outer parcels suitable for quick-service restaurants. Fairborne Properties plans to add multifamily to one of the parcels.
NKF Capital Markets Vice Chairman Nicholas Bicardo and Managing Director Brandon Rogoff represented the seller.
Eastridge Center (San Jose)
The 1.4M SF Eastridge Center completed its multimillion-dollar renovation designed by Gensler in April. Renovations included the addition of murals by local artists, updated courtyards with turf and greenery, a refurbished food court renamed The Eatery, a kids' play area, new family lounges, free WiFi and electric vehicle charging stations.
Mall owner Pacific Retail Capital Partners also added new programming at the shopping center, including Eastridge Art Wednesdays, which host free performances Wednesday nights, and Open Space, a twice-monthly open-mike night. Free community wellness programs are available each week, including donation-based yoga and family-friendly activities.
First Street Napa
Makers Market will open at First Street Napa, a 325K SF mixed-use development in Downtown Napa that includes 45 retail shops and restaurants, creative office and a 183-room Archer Hotel Napa. Makers Market will occupy a 1,310 SF storefront and carry home goods, jewelry, clothing, apothecary, bags and accessories made by local artists. Makers Market first launched in Union Square and has locations in Santana Row, Broadway Plaza in Walnut Creek and the Mill Valley Lumberyard.
Kalifornia Jean Bar and Napastak also will open in 2018. Tenants at First Street Napa, which is owned and managed by Zapolksi Real Estate and Trademark Property Co., also include Charlie Palmer Steak Napa, Overland Sheepskin Co., Compline wine bar + restaurant + merchant, Napa Valley Jewelers, Eiko’s Modern Japanese Cuisine, Brown Estate, Mecox, Tommy Bahama, Pacific Union International and State & First by Maris Collective.
The Pruneyard (Campbell)
Ellis Partners completed the first phase of renovations at The Pruneyard in spring and brought in several retailers, including Asian Box, Teaspoon, Burger Lounge, V’s Barbershop and Books Inc. Trader Joe’s underwent an expansion and store renovation.
Pruneyard Cinemas also underwent a renovation that added luxury recliner seating, in-theater dining and a restaurant and neighborhood bar. Mendocino Farms, Lulu’s and Tin Pot Creamery opened locations at the shopping center. Early 2019, locally owned Luna Mexican Kitchen will open its second location and Be.Steak.A will open. Longtime tenant Trudy’s Brides & Special Occasions completed an extensive renovation in 2017.
The developer purchased The Pruneyard in 2014 and began a major renovation January 2017. The 27-acre mixed-use shopping center has 365K SF of office, 235K SF of retail and restaurants and a 170-room DoubleTree Hotel by Hilton. Renovations included new landscaping, comfortable seating and gathering spots around the center, improved pedestrian walkways, new wayfinding and signage and a new central plaza with a multipurpose raised platform that can be used for seating or entertainment and events.
The Veranda (Concord)
National retailers Sephora, Old Navy, Banana Republic Outlet, Gap Factory Outlet, City Sports Club and Mikuni, a Japanese restaurant and sushi bar, recently opened locations at CenterCal Properties’ The Veranda, which is Concord's newest retail center.
Additional retailers coming to the 375K SF shopping center include Popbar, Puesto, Residual Sugar and Wine Bar, Shabuya, Coffee Shop, Yard House and Silver Lake Ramen.
The Shops at Todos Santos (Concord)
Owner TS Concord LLC began renovations at its downtown Concord shopping center in May. The shopping center extends from the corner of Salvio and Mount Diablo streets to Galindo Street and Willow Pass Road. It will add new restaurants Chipotle, Ramen 101, Burgerim and Fire Wings by winter. Existing tenants include Naan ‘n’ Curry, Cream, Peet’s Coffee, Captriotti’s and The Old Spaghetti Factory. An additional 3,745 SF will be available in October. The center’s broker is Retail West.
