Hillsdale mall in San Mateo brings big real estate investor on board
SAN MATEO – The family-run Hillsdale Shopping Center in San Mateo has brought on board a major real estate investment firm to partner with the bustling retail hub on the peninsula, the companies said Tuesday.
The Bohannon family originally developed the Hillsdale Shopping Center and opened the Trail Hub as an outdoor mall in 1954.
Now the family is partnering with Northwood Investors, a real estate private equity firm, in the retail complex, which operates over 47 acres for 1.3 million square feet.
“We strive to continue 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, chief executive officer of the David D. Bohannon Organization.
Northwood Investors has completed equity investments totaling $ 7 billion, according to the company’s website. The retail real estate company has interests in a number of retail centers in the United States and Europe.
“Northwood is grateful for the opportunity to work with the Bohannon Companies at Hillsdale Shopping Center,” said Brady Thurman, senior managing director at Northwood Investors.
Prior to the Hillsdale Mall venture, Northwood’s only investments in the Golden State were all in Southern California retail centers, according to the company’s website.
This would suggest that Hillsdale Shopping Center marks Northwood’s first foray into the Bay Area market, according to the Northwood website.
“We are excited to bring our mixed use skills to Hillsdale and look forward to a long relationship with the Bohannon family and the San Mateo community,” said Thurman.
In 2016, Bohannon, spurred on by the closure of a Sears store as a longtime anchor, made a major upgrade.
The remodel consisted of demolishing the old Sears building and replacing it with a modern wing known as the North Block.
Along the way, the mall’s main owner received a $ 240 million home loan from Pacific Life Insurance Co., according to documents filed with the San Mateo County Recorder’s Office in December 2016.
“This partnership with Northwood will preserve the family legacy and strengthen our ability to ensure Hillsdale can serve an even greater cause for this community in the decades to come,” said Bohannon.
Alerted by the retail apocalypse unleashed by the dramatic shift to online shopping, the Bohannon family launched Re: Imagine Hillsdale to map a future for the mall.
These alarm bells only rang louder in the wake of the far-reaching retail relocations and closings triggered by the coronavirus.
Bohannon and Northwood executives believe the retail real estate investment company can help create a new approach to the future of Hillsdale Shopping Center.
“The property continues to have a dynamic presence on the peninsula with attractive modern offerings and a loyal customer base,” said Thurman.
Northwood says it will develop a long-term strategy that will benefit the community, mall customers, and the San Mateo community.
“We are confident that Hillsdale Shopping Center will continue its significant presence in the city for the years to come,” said Thurman.