SAN JOSE — H&M is planning to open a store in San Jose’s Eastridge mall and the new owners say they plan millions of dollars in upgrades to a shopping center that was last expanded in 2007.
A joint venture bought the sprawling 1.4 million-square-foot mall near the Highway 101 and Tully Road interchange for $200 million, executives said Friday.
“Eastridge is an exceptional property that serves a large market,” said Steve Plenge, managing principal at operating partner Pacific Retail Capital Partners, adding the new owners “will continue to improve on the property’s retail and restaurant mix.”
He said the owners have already signed H&M to be one of the key new retailers in Eastridge, starting this fall.H&M leased 26,000 square feet. It will be the fourth store in the South Bay for H&M, which sells clothing for women, men and children, and home goods.
“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 on 113 acres in southeast San Jose and is bounded by Capitol Expressway, and Tully and Quimby roads. Pacific Retail Capital Partners teamed up with Silverpeak Real Estate Partners to buy the mall from General Growth Properties.
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 make $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.