Scannell Properties will hang around after flipping the site of a would-be retail mall in Fremont, signing on to oversee the development under its new owner.
Indianapolis-based bought the site from an entity called APIC the Globe––which had envisioned an Asian-themed mall on its 22.5 acres––for $52.5 million in April. It sold the site to an affiliate of Los Angeles-based investor Ares Management for $83.3 million last week.
APIC the Globe also sold a separate 2.5-acre chunk of the property, where some retail had been developed, to John Wynn Nguyen and Tuyet Minh Le of Milpitas, for $11 million, according to public filings.
The markup on the larger chunk of land appears to stem from entitlements obtained to switch plans for the site, which is now expected to be developed as a “advanced manufacturing and state of the art logistics spac,” Todd BerryHill, managing director at Scannell Properties, told The Real Deal.
Scannell’s will proceed on a fee basis for its role in bringing the development to fruition, serving as “boots on the ground, in charge of all aspects of the project,” Berryhill said. “We hope to start demolition in the next 30 days and begin construction on the new buildings in August.”
The property is near the corner of Albrae Street and Stevenson Boulevard in Fremont, next to an exit from Interstate 880.
According to Berryhill, Scannell has been working with the city for 18 months before their purchase to rezone the site from retail to industrial use. Current plans call for the development to include solar panels, route truck traffic away from neighboring residential areas, and hire union subcontractors and labor.
The original plan for the three buildings at 40525 Albrae Street, going back nearly two decades, was to create a mall with multiple shops and restaurants that would exemplify different facets of Asian culture, The developers also wanted a 12-story hotel that would have been the tallest building in Fremont.
The Great Recession disrupted those plans however, and only a section of the retail complex was developed.
Scannell became interested in the property over a year ago and made a case to city officials that the space could bring in 300 to 650 permanent jobs in manufacturing and distribution.
Scannell also estimates 350 to 400 temporary jobs would be created during the anticipated 11-month construction period.
The project is speculative and will be delivered in early 2023, according to Berryhill.
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