East Bay Shopping Center Trades for $37M | GlobeSt

By Jack Rogers

June 12, 2024 at 06:03 AM

Located next to Hilltop Mall, which is slated for Prologis mixed-use redo.

Los Angeles-based Primestor Development has acquired Hilltop Plaza, a 246K SF strip mall in Richmond, for $36.5M.

Primestor, which develops, manages and leases community-oriented projects with a focus on underserved minority communities, has invested more than $1B in urban, mixed-use real estate.

“Hilltop Plaza represents the opportunity to acquire a strategic infill project that aligns with our investment strategy of empowering communities through the acquisition and management of institutional quality real estate,” said Lonnie Vidaurri, Primestor chief investment officer, in a statement.

“The project is characterized by high barriers to entry, a rapidly expanding minority population, adjacency to regional transportation infrastructure, and a location within a re-envisioned specific plan,” Vidaurri said.

A JLL team including Geoff Tranchina, Eric Kathrein, Gleb Lvovich, and Warren McClean represented Primestor and the seller, Site Centers Corp., a publicly traded REIT based in Beachwood, OH, in the transaction, according to a report in the San Francisco Business Times.

Hilltop Plaza, located on 59 acres at 3190-4251 Klose Way, currently has an occupancy rate of 88%. Current tenants including Ross Dress for Less, City Sports Club, DD’s Discount and Century Theatres.

Primestor is actively negotiating with several prospective tenants in the shopping and entertainment category, the report said.

Hilltop Plaza sits across the street from the larger Hilltop Mall, a 78-acre property that was purchased by Prologis in 2021 for $117M. The mall is mostly vacant, with Walmart still operating a store there.

Prologis is planning a mixed-use development including housing at Hilltop Mall. A preliminary proposal last fall included replacing the mall property and its mostly unused parking lot with a mix of residential, retail and parks along with a warehouse.

Walmart is expected to remain as part of the redevelopment, the Richmond Standard reported.

The Richmond Planning Commission has been developing what it calls the Hilltop Horizon Specific Plan for an area encompassing 145 acres, including the Hilltop Mall property owned by Prologis and parcels to the south and southeast of the mall that are owned by 19 other property owners.