Investors Buy Former Nordstrom Site in Pleasanton for $16M

A trio of investors has bought a shuttered Nordstrom department store in Pleasanton for $16 million, with potential plans to redevelop it into homes.

A joint venture between Shopoff Realty Investments, Praelium Commercial Real Estate and an affiliate of Singerman Real Estate bought the 8.4-acre site at 1 Stoneridge Mall Road, the San Jose Mercury News reported. The seller was Nordstrom, based in Seattle.

The property at Stoneridge Shopping Center includes the two-story, 149,000-square-foot building and an adjacent parking lot. The Nordstrom closed in 2019.

The buyers – Shopoff and Praelium, both based in Irvine; and Singerman, based in Chicago – also obtained a loan of $8 million from 980 Loanco at the time of purchase, according to the Mercury News.

“This asset represents an opportunity to acquire a significant piece of property in a highly desirable market in Northern California,” William Shopoff, CEO of Shopoff Realty Investments, said in a statement.

The deal marks the second purchase in two years of a big department store property at the Stoneridge mall. .

Last July, a group headed up by 300 Venture Group, a Danville-based real estate firm, bought the JCPenney store building at Stoneridge, either to redevelop or revamp for the department store tenant. Macy’s and JCPenney remain anchor stores at the East Bay mall, which has 139 shops and restaurants, according to owner Simon Property Group.

Nordstrom’s exit from Pleasanton four years ago appears to have triggered a slump in real estate value for the property, according to the Mercury News, which cited the Santa Clara County Assessor’s Office.

As of mid-2022, the Nordstrom property at the Pleasanton regional mall had an assessed value of $45.6 million.

In recent years, Shopoff has invested in four regional mall sites, including the former Nordstrom store property in Pleasanton. Early this year, the city of Pleasanton adopted their state-mandated housing element plan, which targeted Stoneridge Mall as a potential site for housing development.

“We are looking forward to working with the city to repurpose this property and deliver much-needed new housing and other uses for the community,” Shopoff said.

In July, Shopoff bought a former Sears department store at a mall in Westminster, in Southern California, for $46.3 million.

In December 2021, it acquired land for a master-planned development with up to 3,650 residential units and 250,000 square feet of commercial space in the Inland Empire. It also plans to build two warehouses totaling 1.8 million square feet in Riverside County.

Last December, Singerman Real Estate teamed up with Harbor Associates to revamp two buildings with nearly 300,000 square feet of offices in Aliso Viejo, in South Orange County.

— Dana Bartholomew