Fremont’s The Globe Mall Sells to Pair of Developers for $63.6MM

Ares Management, Fremont, The Globe Mall, Scannell Properties, Tech Center @ 880
Robert Becker for Scannell Properties

By Meghan Hall

In recent years, retail centers and shopping malls have been eyed by developers. Well located, and with land to spare, such assets are considered prime for redevelopment as brick-and-mortar retail reinvents itself. However, plans for repositioning do not always pencil out, and new companies will often step up to take the reins. In a recent Fremont deal, The Globe Mall sold to two development firms for a combined $63.6 million. The transaction was first reported by The Mercury News.

In the larger of the two transactions, Scannell Properties paid $52.5 million in cash for six different parcels totaling 22.5 acres. In a second deal, for 2.5 acres, local investors paid $11.1 million. In both cases, the seller was an entity affiliated with APIC The Globe. 

The previous owners had intended to revamp the mall into one that exemplified different aspects of Asian culture. However, the Great Recession largely thwarted those plans, and only a small section of the property was ever revamped.

Scannell Properties, however, has its own plans for the site and intends to update the property, converting it into a high-tech, mixed-use site. At the property, some 397,000 square feet of industrial space at 40525 Albrae would be constructed. The development could create between 300 to 600 jobs. Construction would take about 11 months.

Indianapolis-based Scannell Properties is a privately-owned real estate development and investment company that focuses on build-to-suit and speculative development projects. Since 1990, the firm has expanded its reach to both Europe and Canada. Within the continental US, its portfolio spans markets in California, Washington, Texas and others.

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