Investment in the large regional shopping center of San Mateo: 257 million dollars

SAN MATEO — A seasoned real estate firm has paid a quarter of a billion dollars to buy a sizable stake in Hillsdale Mall, a premier regional shopping center in San Mateo, according to this news agency’s review of public records.

Northwood Investors, a real estate private equity firm, paid $256.9 million to acquire a stake in Hillsdale Mall, which totals 1.3 million square feet, according to documents filed with the county registrar’s office. of San Mateo.

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

Hillsdale Mall at 60 31st Ave. in San Mateo, North Block Outdoor Plaza section. A seasoned real estate company has paid a quarter of a billion dollars to buy a sizable stake in Hillsdale Mall, a premier regional shopping center in San Mateo, according to this news agency’s review of public records.

With the purchase of the property, the owners of Hillsdale Mall are now affiliated companies controlled by Northwood and by the David D. Bohannon Organization, the family business that has developed and owned Hillsdale since it opened as an outdoor 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 for the past 75 years,” said David Bohannon II, Bohannon Company General Manager.

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

“We are thrilled to bring our mixed-use capabilities to Hillsdale and look forward to a long relationship with the Bohannon family and the San Mateo community,” said Brady Thurman, senior managing director at Northwood Investors.

Prior to the Hillsdale Mall venture, 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 Bohannon Companies on the Hillsdale Mall,” Thurman said.

In 2016, spurred by the closure of a Sears store as a longtime 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 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 dramatic shift to online shopping, the Bohannon family launched Re:Imagine Hillsdale, a venture to revamp the future of the mall.

Concerns have intensified following wide-ranging dislocations and shutdowns triggered by the coronavirus.

Bohannon and Northwood executives believe the investment firm can help spur a new approach to staking out the Hillsdale Mall.

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

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


Source link

Peggy P. Gilmore