Investment in large regional shopping center in San Mateo: $ 257 million

SAN MATEO – A seasoned real estate company paid a quarter of a billion dollars to buy a significant stake in Hillsdale Mall, a major regional shopping center in San Mateo, according to the review of the public records of this news organization.

Northwood Investors, a real estate private equity firm, paid $ 256.9 million to purchase an interest in the Hillsdale shopping center, which totals 1.3 million square feet, according to documents filed with the recorder’s office of San Mateo County.

The value of the purchase was derived from the San Mateo municipal taxes that the Northwood subsidiary HSC Property Owner paid for its investment in the Hillsdale mall, according to property records filed on Dec. 2.

With the purchase of the property, the owners of Hillsdale Mall are now subsidiaries controlled by Northwood and the David D. Bohannon Organization, the family business that has developed and owns Hillsdale since it opened as an open-air mall. in 1954.

“We are committed to continuing our family’s relationship with this property and its service to the San Mateo community, as we have done for the past 75 years,” said David Bohannon II, CEO of The Bohannon Company.

Northwood Investors has made equity investments totaling $ 7 billion in a range of malls in the United States and Europe, according to the company’s website.

“We are delighted to bring our mixed-use capabilities to Hillsdale and look forward to a long relationship with the Bohannon family and the San Mateo community,” Brady Thurman, Senior Managing Director, Northwood Investors.

Prior to the company at Hillsdale Mall, Northwood’s only investments in the Golden State were in Southern California malls, according to the company’s website.

“Northwood is grateful for the opportunity to partner with the Bohannon Companies on the Hillsdale Mall,” said Thurman.

In 2016, spurred on by the closure of a Sears store as a long-standing anchor, the Bohannon Company launched a major upgrade to demolish the old Sears building and replace it with a modern wing known as the North Block.

The Bohannon Group has secured a $ 240 million construction loan from Pacific Life Insurance Co., according to county documents filed in 2016.

Faced with the retail apocalypse ushered in by the radical shift to online shopping, the Bohannon family launched Re: Imagine Hillsdale, a company aimed at reshaping the future of the mall.

Concerns have intensified in the wake of the large-scale retail disruption and closures triggered by the coronavirus.

Executives at Bohannon and Northwood believe the investment firm can help spur a new approach for the Hillsdale Buoy Mall.

Northwood says he will develop a long-term strategy to benefit the community, mall customers and the community of San Mateo.

“We are confident that Hillsdale Mall will continue to have a significant presence in the city for years to come,” said Thurman.

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Peggy P. Gilmore