Key step in transforming shopping center into lively mixed-use destination and regional transit hub
(EDITOR’S NOTE: According to public documents, Lowe spent $73 million to acquire the city-block retail center.)
REDWOOD CITY, Calif. – Lowe, a national real estate developer, investor and manager, announced today that it has closed an off-market transaction with Regency Centers Corporation to acquire its portion of the Sequoia Station Shopping Center in downtown Redwood City, Calif. Lowe is in the process of seeking entitlements to redevelop the site into a vibrant and modern mixed-use development as part of Redwood City’s proposed Transit District.
The Regency portion of the property includes 103,000-square feet of retail on 6.65 acres. The shopping center is anchored by Safeway and CVS, and is adjacent to Downtown and the highly trafficked Redwood City Caltrain Station. Safeway (Albertson Companies) will retain its current ownership within the shopping center and both Safeway and CVS will remain open and operational as the phased project is constructed.
Given its proximity to the Caltrain Station, the Sequoia Station redevelopment is critical to unlocking vital transportation improvements for Redwood City and the region, while creating new housing and maintaining the shopping convenience the center provides to local residents.
“With the redevelopment of Sequoia Station, Lowe, in partnership with affordable housing partner Eden Housing, now has a transformational opportunity to reimagine neighborhood retail and enable future rail and grade separation upgrades in Redwood City, creating a vibrant and walkable public realm that connects to Downtown and provides much-needed housing,” said Alan Chamorro, Senior Vice President and Northern California Regional Leader at Lowe.
Caltrain’s 2040 Service Vision Plan identified the Redwood City Caltrain station as the ideal location for a mid-Peninsula transfer hub due to its high ridership, density, and potential connection to the Dumbarton rail line. As part of the redevelopment, Lowe will dedicate approximately one acre of right-of-way for Caltrain to build a new train station and expand from two to four tracks. This change will also allow Redwood City to implement grade separations and safely connect the city’s downtown core to its western neighborhoods.
In addition to the significant transit benefits this redevelopment will provide, the project will deliver up to 631 apartment homes, including 254 (40%) affordable homes – double the city’s requirement – as well as a ~10,000 square-foot childcare center and lively public open space with a central plaza that will be programmed with entertainment and events for the community. Once completed, Safeway and CVS will have brand new stores within the project, with plenty of safe underground parking, as part of the updated ~170,000 square-foot retail shopping experience.
Lowe is a leading national real estate investment, development and management firm. Over the past 49 years, it has developed, acquired or managed more than $32 billion of real estate assets nationwide as it pursued its mission to build value in real estate by creating innovative, lasting environments and meaningful experiences that connect people and place. Lowe currently has more than $2 billion in commercial real estate projects in the pipeline or under development. In addition to its Los Angeles headquarters and local office and team in Oakland, Lowe maintains regional offices in Southern California, Northern California, Charleston, Denver, Seattle, and Washington, DC. Lowe’s hospitality affiliate, CoralTree Hospitality, operates numerous hotel and resort properties across the US and in Mexico. Lowe’s commercial property operations affiliate, Hospitality at Work®, brings hospitality inspired-property management service to office buildings nationwide.