Investors Pay $23.75MM for Hilltop Mall in Richmond

Hilltop Mall, Richmond, Prologis, Newmark, LBG Real Estate Companies,

By Vladimir Bosanac

In late July of 2017, LBG Real Estate Companies and Aviva Investors announced the purchase of the Hilltop Mall, a 1,100,000-square-foot regional mall in the East Bay city of Richmond. The price the companies paid for the mall was not announced at the time, however public records show that the purchase price was $23,750,000, or roughy $21.59 per square foot. At the same time the companies announced the purchase, they also stated their intention to implement a new merchandising strategy for the mall, along with exploring redevelopment and possibly adding as many as 9,600 housing units as well as office and hotel uses.

“The Hilltop District has the potential to become the premier East Bay residential mixed use walkable community of the future,” said Doug Beiswenger, managing partner in charge of entitlements and construction for LBG, at the time in a prepared statement.

The immediate retail redevelopment will include significant upgrades to the building exterior, interior common areas, and signage surrounding the property, the buyers said in a statement. “We believe our reimagined merchandising and branding strategies will increase consumer traffic dramatically, be very well received by the retail community and be well supported by residents throughout the East Bay,” said David S. Goldman, managing partner in charge of Leasing for LBG.

“The surrounding neighborhood has great growth opportunities that contribute to a strong value-proposition,” Russ Bates, head of the Americas of Aviva Investors’ Global Indirect Real Estate Group said in a statement, “When considering such an opportunity for our client portfolios, we assess the prospect of repositioning a property along with demographic income levels and buying habits, and are pleased to joint venture with a real estate specialist of the caliber of LBG on this property.”

The companies were also able to secure acquisition financing in the amount of $10,753,750, according to documents reviewed by The Registry. BOK Financial dba Bank of Arizona provided the financing.

West Coast Commercial Real Estate News