Indianapolis-based Simon Property Group has received approval from the Pleasanton City Council to develop a six-story multifamily building at the Stoneridge Shopping mall. The project has taken nearly a decade to obtain approval.
The Stoneridge Mall is located at 1 Stoneridge Mall Road and the proposed building will contain 360 units. The complex, which would be located on the southeast corner of the shopping center, would be built across 6 acres located between the mall, the new 10x Genomics campus project to the south across Stoneridge Mall Road, and offices to the east across Stoneridge Mall Road.
The building will offer 58 below market rate apartments which will comply with the recently passed Inclusionary Zoning Ordinance in the city. The ordinance requires all new multi-family residential projects of 15 units or more to provide at least 15 percent of the project’s total units at prices that are affordable to very low- and/or low-income households
“I appreciate the 58 low-income units, maybe for some teachers in our community who are looking to stay and these are rental apartments,” Mayor Karla Brown said.
The mall has seen foot traffic decrease in recent years, and Pleasanton is looking to turn it into a mixed-use center with nearly 1,200 housing units.
“We’ve seen the Stoneridge Mall grow less active, less vital, less interesting and less populated,” Brown said at a public meeting in January. “This is a chance to, I think, make one of the most important decisions within 10 years easily — revitalizing this Stoneridge Mall.”
Simon Property Group is the largest mall owner in the nation and is developing housing at centers in other markets. The Indiana-based 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.
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 residential 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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