SAN JOSE — A joint venture has bought San Jose’s landmark Eastridge mall for $200 million and signed high-profile retailer H&M to a lease for the regional mega-mall, executives said Friday.
Pacific Retail Capital Partners and Silverpeak Real Estate Partners teamed up to buy the 1.4 million-square-foot Eastridge mall near the interchange of Highway 101 and Tully Road. The joint venture bought the mall from General Growth Properties.
“Eastridge is an exceptional property that serves a large market,” said Steve Plenge, managing principal at operating partner Pacific Retail Capital Partners. “We will implement a strategy that will build upon General Growth’s past leasing efforts and will continue to improve on the property’s retail and restaurant mix.”
The new owners also said they signed H&M to be one of the key new retailers in Eastridge, starting this fall.H&M leased 26,000 square feet.
“H&M is a fashion retailer that is an ideal fit with the market that is comprised largely of young professionals and families,” Plenge said.
The two-story Eastridge center is located on 113 acres in southeast San Jose and is bounded by Capitol Expressway, and Tully and Quimby roads.
In 2007, just before the recession, General Growth Properties completed an extensive $140 million expansion and renovation of the mall. The upgrade added AMC Theatres and a wide-ranging array of other improvements.
The new owners intend to undertake $15 million in renovations to Eastridge.
“Adding H&M is part of a strategic leasing plan that will ensure that Eastridge meets the demands of the more than one-quarter of a million potential customers that live within three miles,” said Constantine Tujios, senior vice president, Silverpeak Real Estate Partners.
Contact George Avalos at 408-859-5167. Follow him at Twitter.com/georgeavalos.