New partner to remake Hillsdale Shopping Center in San Mateo

Bohannon Companies owns and opened Hillsdale Shopping Center in 1954, which offers more than 120 specialty retail options at its 47-acre property. Northwood Investors is a large real estate private equity firm with multiple large properties in San Francisco and worldwide. Northwood Investors will use its Northwood Retail platform to improve short- and long-term operations. Bohannon said partnering with Northwood would help due to its national profile and expertise in real estate and large projects. Northwood will also manage daily mall operations and be in contact with tenants and vendors.

“Much later, down the road, when we determine what the changes ought to look like, Northwood has the strength and capability to execute large-scale developments. Step one is continuing to manage and operate the mall,” Bohannon said.

Bohannon said more mixed-use changes were possible, which could include housing and office space to go along with retail options. The mall is a few minutes from transit areas of Hillsdale train station and El Camino Real, with the city prioritizing housing near transit. He noted it was hard to know what Hillsdale would do until it talked to the community and the city of San Mateo about needs. He pointed out that community conversation would take a couple of years, along with conversations about San Mateo’s 2040 General Plan and its internal discussions. The city’s General Plan provides the framework for all zoning and land use decisions within a community and is currently being worked on.

“I think we are talking several years into the future,” Bohannon said.

The pandemic has hurt the retail business at Hillsdale over the past couple of years. Bohannon has seen recovery at the North Block Plaza area, a newly redeveloped part of Hillsdale previously home to Sears and others. The location features several new restaurants, retail and entertainment options, including Pinstripes Bowling, Red Door Escape Room, Philz Coffee and The Refuge. However, he noted retail faces challenges now and in the future.

“One of the ways to address that is to bring more vibrancy to the place. Bringing office and housing and creating an urban mix,” Bohannon said.

He said the central block of the mall, in particular, was very challenged in the long run. He wanted the central block to have a strong retail presence, but current trends did not suggest that was the case.

“We are going to be making every effort, and Northwood will be leading the effort to do the best possible job we can in keeping the mall leased and providing good options and offerings in the central block. We will just have to see how well that goes,” Bohannon said.

In the long term, he wants to have conversations with the community about potential changes to the center. He plans to reengage with the community on possible changes and bring on an urban planner to stimulate talks. The shopping center launched a community feedback project Re:Imagine Hillsdale in 2019. The project gave residents the chance to share priorities and values for the next era of Hillsdale. It found new housing units in the Hillsdale footprint was a priority, along with more public space, reinvention of stores and driving economic recovery.

curtis@smdailyjournal.com

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