July 26, 2017— LBG Real Estate Companies and Aviva Investors today announced the purchase of Hilltop Mall, a 1,100,000-square-foot regional mall in the East Bay city of Richmond, Calif. The property, located at 2200 Hilltop Mall Road, was originally developed in 1976 and renovated in 2007, and encompasses approximately 77 acres of land prominently located at the Hilltop Mall exit off of Interstate-80. It offers exceptional visibility and access to a dense and growing residential population, and spectacular views of the San Francisco Bay. Hilltop Mall features many well-known national tenants including Macy’s, Walmart, Sears, and 24-Hour Fitness .
“Hilltop Mall has experienced higher tenant defections and has suffered from deferred maintenance over the past six years as it’s been either in foreclosure or lender owned,” said Leslie Lundin, Managing Partner for LBG. “LBG’s ownership will be the first true developer ownership for Hilltop Mall since the end of the last downturn. Hilltop is a sleeping giant just waiting for a chance to be reborn.”
The irreplaceable property is ideally situated 20 miles northeast of San Francisco, and 25 miles south of Napa, which is an ideal location for the rapidly growing area that is within a 30-minute drive from San Francisco, Oakland, Berkeley, Walnut Creek, Napa, and Marin County.
LBG plans to implement an entirely new merchandising strategy for the mall which, when combined with extensive rebranding and redevelopment, will once again create an inviting and exciting atmosphere for shopping, entertainment and dining and revitalize this formerly iconic destination in the East Bay. LBG will explore a larger redevelopment to take advantage of the zoning in place which would allow more than 9,600 housing units at the property as well as office and hotel uses.
“The Hilltop District has the potential to become the premier East Bay residential mixed-use walkable community of the future,” said Doug Beiswenger, Managing Partner in charge of entitlements and construction for LBG.
The immediate retail redevelopment will include significant upgrades to the building exterior, interior common areas, and signage surrounding the property. “We believe our reimagined merchandising and branding strategies will increase consumer traffic dramatically, be very well received by the retail community and be well supported by residents throughout the East Bay,” said David S. Goldman, Managing Partner in charge of Leasing for LBG.
“The surrounding neighborhood has great growth opportunities that contribute to a strong value-proposition,” Russ Bates, head of the Americas of Aviva Investors’ Global Indirect Real Estate Group stated, “When considering such an opportunity for our client portfolios, we assess the prospect of repositioning a property along with demographic income levels and buying habits, and are pleased to joint venture with a real estate specialist of the caliber of LBG on this property.”