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San Francisco

Simon to develop housing at East Bay retail center

Multifamily building will rise 65 feet tall and contain 360 units at Stoneridge Mall

Simon Property Group's David Simon and Stoneridge Mall, Pleasanton (Simon Property Group, Getty)
Simon Property Group's David Simon and Stoneridge Mall, Pleasanton (Simon Property Group, Getty)
By
Mar 6, 2023, 2:50 PM

Indianapolis-based Simon Property Group has filed plans with the City of Pleasanton to convert a parking structure at the Stoneridge Mall into 360 residential units.

The multifamily building at the Stoneridge would rise 65 feet with about 608,000 square feet. The size of the units will average 820 square feet. Plans also call for the construction of a 383,000-square-foot parking garage that can hold 473 cars. Demolition of an existing 600 to 700 surface parking spaces clear space for the development.

The 65 stories is above the limit that is allowed in Pleasanton’s housing and design guidelines; however, Simon was approved for an exception at the last Planning Commission meeting. The group voted 4-1 to approve the exception, with Commissioner Ken Morgan the lone dissenter. He questioned whether the design meets a recently discussed framework for development at the Stoneridge Mall.

“What I’m asking is that we do an analysis to see where it does and doesn’t comply with the new standards,” Morgan said. 

Simon Property Group is the largest mall owner in the nation and is developing housing on sites of malls in other markets. The Indiana-based mall developer has filed plans to build a fitness center, 380 apartments and outdoor shops and restaurants at the mall at 1065 Brea Mall in Los Angeles. 

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There are multiple examples of retail malls planned for residential conversion throughout the Bay Area. New York-based Kimco Realty is redeveloping the former Burlington Coat Factory at the Westlake Mall in Daly City into 240 units of housing. Kimco also plans to build 208 resi units at the Gateway Plaza in Fremont, and  280 homes are planned to replace the Maplewood Plaza in San Jose.

Investors currently see retail centers as an opportunity to redevelop in-demand housing in urban and suburban markets.

“Currently investors are looking to secure retail centers that will unlock value and meet

consumers rapidly changing demands,” Jay Roman from Nai Norcal, a broker specializing in retail, said. “These emerging retail opportunities are becoming the most valuable asset class in the post-pandemic landscape. By repositioning aging, vacant or under-utilized properties, investors can redevelop these centers into mixed-use properties addressing the housing crisis.”

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