Sunnyvale Town Center

Last updated
Sunnyvale Avenue entrance in 2005, after closure of the mall Town Center Mall 3 fall 2005.jpg
Sunnyvale Avenue entrance in 2005, after closure of the mall

Sunnyvale Town Center was a two-level shopping mall located in Sunnyvale, California, USA. It opened in 1979 on the site of much of the city's downtown, and was anchored by Macy's, Montgomery Ward, and later, J.C. Penney. Target moved in when Montgomery Ward closed. By the early 2000s, the mall had failed financially and only the Target and Macy's (closed in 2019) stores remained open. Work on a mixed-use development to replace the mall was stalled by a legal dispute from 2009 to 2015, with most buildings incomplete, but resumed after the city reached an agreement with new developers in mid-2016. By the end of 2020, a multi-screen movie theater and a supermarket had been built and opened in addition to most of the residential buildings; as of January 2021, replacement plans were going forward for a group of lots including the site of Macy's, which closed in 2019. Much of the area has now been rebranded as CityLine Sunnyvale. [1]

Contents

History

The mall opened in 1979 on a 36-acre site [2] bounded by Mathilda Avenue, Washington Avenue, Sunnyvale Avenue, and Iowa Avenue and comprising most of Sunnyvale's downtown, except for one block of its main street, Murphy Avenue. [3] [4] The City Council took the decision to build the mall in June 1976; demolition began in 1977 and included Sunnyvale Plaza, a twenty-year-old retail development. [5] After a campaign by local resident Fern Ohrt, six redwood and cedar trees that had surrounded the first Sunnyvale city hall and had been donations from residents were preserved in an open space at the center of the mall. [5] [6] [7]

The passage of Proposition 13 in 1978 reduced property taxes that the City of Sunnyvale had expected to use to pay off the bonds issued for construction of the Town Center, and also reduced interest rates paid by the developer. The fact that a third anchor tenant, J. C. Penney, was not obtained until 1992 further increased the city's difficulty in recouping the cost of the mall. [5]

Over the years, the development went through a series of owners who either defaulted on loans or were sued for breach of contract. During that time, the mall fell into decline with changing tastes of shoppers and the emergence of newer and larger competitors. By 2002, the mall, then known as WAVE (Walking and Village Entertainment), was largely untenanted except for the three anchor stores, Macy's, Penney's, and Target, and the city decided to replace it with a modern version of a traditional downtown, including stores, restaurants, a movie theater, and high-rise apartment buildings. [3] Redwood Square was to be a central plaza incorporating the redwood trees. [6] Finally, in 2007, new entities named "Downtown Sunnyvale Mixed Use LLC" (DSMU) and "Downtown Sunnyvale Residential LLC" (DSR) took over the mall. DSMU and DSR were partnerships between Silicon Valley developer Peter Pau's Sand Hill Property Co. (which owned about 5%), and RREEF, a real-estate management business owned by Deutsche Bank (which owned the remaining 95%). [8] DSMU/DSR's goal was to redevelop the mall into a high-end retail, residential and office development similar to San Jose's successful Santana Row. [9] [10]

Demolition and redevelopment

DSMU/DSR took out a loan of $108.8 million from Wachovia Bank; Wachovia was later acquired by Wells Fargo. [11] By June 2009, with the mall demolished and Target having been replaced by a new store but the other new buildings incomplete, DSMU/DSR defaulted on the loan. Pau said that the decision to default was made by RREEF without his consent. [11] After the default, Wells Fargo started foreclosure proceedings. A foreclosure auction in August 2011 attracted no bidders, so Wells Fargo took possession of the property itself. [2] [9] The bank then attempted to sell the land to another developer, but this attempt was thwarted by a lawsuit from Pau, [11] and further development continued to be stymied by litigation between Pau and Wells Fargo. [12] [13] [14] [15] In May 2012, the City of Sunnyvale issued a press release accusing Pau of having filed "delaying lawsuits that have served little purpose other than to hold the project hostage", [11] [16] and claiming that "a nationally-recognized development team was set to come in and finish the project in 2011 ... until the barrage of lawsuits blocked their entry". [16] In February 2013, further appeals were filed by both Pau and Wells Fargo; Pau's attorney estimated that the appeals would delay resolution of the case by at least two years. [17]

By January 2015, apart from Target and Macy's the only active tenants on the site were Apple and Nokia, which had occupied new office space along Mathilda Avenue. [17] The remaining retail and entertainment spaces were still under construction and the residential units were all unfinished.

The California Court of Appeals rejected Pau's two appeals in January and May 2015. [18] [19] Pau filed an appeal to the California Supreme Court, [20] which declined to review the decision on August 12, 2015, effectively ending the litigation. [21] On November 18, 2015, Wells Fargo announced that it intended to sell the mall to an ownership group made up of J.P. Morgan Asset Management, Sares Regis Group and Hunter Properties. That announcement triggered a 20-day review period during which the Sunnyvale City Council evaluated the proposed ownership group. On December 10, 2015, the Council voted to acknowledge that the new ownership group met the necessary criteria, effectively allowing the sale to proceed. [22] [23]

Redwood Square, 2017; Macy's is at far right. Sunnyvale redwoods.jpg
Redwood Square, 2017; Macy's is at far right.

In July 2016, the city announced an updated agreement with the developers under which the project would be modified: high-rise residential, restaurant, and retail components and a movie theater would be built, but some two-story retail buildings around Redwood Square, for which only the steel framing had been erected, would not be finished as originally planned. [24] In September 2016, the new development team closed escrow and took possession of the project. [25] The development was rebranded as CityLine Sunnyvale, [26] and after the steel frames of the buildings around Redwood Square were removed, a temporary park was created. [27]

The 12-screen AMC movie theater, announced in October 2017, [28] opened in October 2020 together with a Whole Foods supermarket in the same building on the Sunnyvale Avenue edge of the site. [29] [30]

In January 2019, Macy's announced that its Sunnyvale store, originally part of the mall, would close in March 2019 as part of a nationwide retrenchment. [31] The store building had previously been sold; [26] the developers submitted a proposal in August 2020 for a redesigned group of mixed-use buildings around Redwood Square, which is to become a one-acre park, [32] and in January 2021 the first stage of this plan was approved, including replacement of the Macy's building with an office tower. [33]

Nearby developments

The Town and Country Village retail buildings across Washington Avenue from the site were demolished by the end of April 2010 [34] and in 2013–14 were replaced with mid-rise apartment buildings with ground-floor retail, developed by BRE and Carmel Properties. [35]

Related Research Articles

<span class="mw-page-title-main">Sunnyvale, California</span> City in California, United States

Sunnyvale is a city located in the Santa Clara Valley in northwest Santa Clara County in the U.S. state of California.

<span class="mw-page-title-main">Irvine Company</span> American real estate company

The Irvine Company LLC is an American private company focused on real estate development. It is headquartered in Newport Beach, California, with a large portion of its operations centered in and around Irvine, California, a planned city of more than 300,000 people mainly designed by the Irvine Company. The company was founded by the Irvine family and is currently wholly owned by Donald Bren.

<span class="mw-page-title-main">Bloomingdale's</span> American luxury department store chain

Bloomingdale's Inc. is an American luxury department store chain founded in 1861 by Joseph Bloomingdale and Lyman Bloomingdale. It was acquired by Federated Department Stores in 1930, which purchased the Macy’s department store chain in 1994, when they became sister brands. Ultimately, Federated itself was renamed Macy’s, Inc. in 2007.

<span class="mw-page-title-main">Pruneyard Shopping Center</span> Shopping mall in Campbell, California, US

The Pruneyard Shopping Center is a 250,000 sq ft (23,000 m2) open-air shopping center located in Campbell, California, at the intersection of Campbell Avenue and Bascom Avenue, just east of State Route 17. It was built in the 1960s as the PruneYard Shopping Center. It includes shops, a DoubleTree by Hilton inn, a movie theater originally built in 1964, and three office towers built in 1970, one of which is the tallest building in the area outside of downtown San Jose.

The Paseo is an outdoor mall in Pasadena, California, covering three city blocks with office space, shops, restaurants, a movie theater, and 400 loft-style condominiums above.

<span class="mw-page-title-main">Hilltop Mall</span> Shopping mall in Richmond, California

Hilltop Mall was a regional shopping center in the Hilltop neighborhood of Richmond, California. Hilltop was managed and co-owned by Prologis, Inc. The only anchor store left is Walmart. There are 3 vacant anchor stores that were once Macy's, JCPenney and Sears.

<span class="mw-page-title-main">Westfield Valley Fair</span> Shopping mall in California, U.S.

Westfield Valley Fair, commonly known as Valley Fair, is a prominent shopping mall in San Jose, California. Valley Fair is the largest mall, by area, in Northern California and has higher sales revenue than all other malls in California, including the two in Southern California which have larger area than Valley Fair. Valley Fair is the fourteenth largest shopping mall in the United States. It is officially located on Stevens Creek Boulevard in Santa Clara, California, although all of its eastern half and some of its western half is physically located in the city of San Jose. The mall features Macy's, Macy's Men's and Home Store, Nordstrom and Bloomingdale's.

<span class="mw-page-title-main">Metrocenter (Phoenix, Arizona)</span> Former shopping mall

Metrocenter was a regional enclosed shopping mall in northwest Phoenix, Arizona. It was bounded by Interstate 17, 31st, Dunlap and Peoria Avenues. Before its closure, the three most recently open anchor stores were Harkins Theatres, Walmart Supercenter, and Dillard's Clearance Center; three additional vacant anchor stores included former Sears, JCPenney, and Macy's locations. The mall featured 100 stores, a 12 screen movie theater, and a food court. Since January 2021, the mall had been owned by the Carlyle Development Group based in New York City. The mall officially closed on June 30, 2020.

<span class="mw-page-title-main">Redmond Town Center</span> Shopping mall in Washington, US

Redmond Town Center is a mixed-use development and shopping center located in downtown Redmond, Washington. Owned and managed by Fairbourne Properties, Redmond Town Center has more than 110 shops, restaurants, lodging, and entertainment venues in an outdoor environment. It opened in 1997 on the site of a defunct municipal golf course along the north side of State Route 520.

<span class="mw-page-title-main">Vallco Shopping Mall</span> Shopping mall in California, U.S.

Vallco Shopping Mall is a mostly-demolished dead mall located in Cupertino, California, United States. Originally built as a single-story shopping mall in 1976 with a lower level added in 1988 and a third-level movie theater added in 2007, it was anchored for most of its existence by Macy's, Sears, and J.C. Penney. As of August 2022, the mall is owned by Sand Hill Property Co. and is almost entirely vacant, with Cupertino Ice Center, Bowlmor Lanes, and Benihana as the only remaining tenants, all in the section to the east of Wolfe Road. The larger western portion of the main mall structure was demolished in August 2019 and the pedestrian overpass was demolished in March 2020; plans for the site include a mixed-use development consisting of office space, housing, and retail.

<span class="mw-page-title-main">Burbank Town Center</span> Shopping complex in Southern California

Burbank Town Center is a large shopping mall complex that opened in August 1991 in Burbank, California, United States. The three-level indoor mall is anchored by Macy's, Burlington, Sears, and ROUND1 Bowling & Amusement, with an open air shopping plaza anchored by Office Depot.

<span class="mw-page-title-main">Eastridge</span> Shopping mall in San Jose, California

Eastridge, officially Eastridge Center, is a shopping mall in San Jose, California, located in the Evergreen district of East San Jose. Eastridge opened as the largest mall on the West Coast in 1971 and has been redesigned multiple times throughout its history, most recently in 2017. Eastridge serves as an important community hub in Evergreen and the larger East Side, hosting farmers markets, holiday celebrations, and community events. The anchor stores are JCPenney, Macy's, AMC Theatres, Round 1 Entertainment, and 24 Hour Fitness.

<span class="mw-page-title-main">Bank of Italy Building (San Jose, California)</span> Commercial offices in San Jose, California

The Bank of Italy Building is a 14-story, 77.72 m (255.0 ft) Renaissance Revival high-rise office building on the corner of South First Street and Santa Clara Street in downtown San Jose, California. Built in 1925–26 as San Jose's first skyscraper, it has a red-tile hip roof and a decorative cupola with a needle-like spire featuring a tall green light. It is a designated San Jose Historical Landmark and part of the Downtown Historic District.

<span class="mw-page-title-main">Sunset Esplanade</span> Shopping mall in Oregon, United States

The Sunset Esplanade is an outdoor shopping center located in the southeast part of Hillsboro, in the U.S. state of Oregon. Opened in 1989, the center is along Tualatin Valley Highway at Minter Bridge Road and includes about five anchor tenants and about thirty other tenants in a complex with about 363,000 square feet (33,700 m2) of space. Neighbors opposed the center when it was proposed, due to concerns over increased traffic and how it would blend with existing residential neighborhoods. After appeals to the Hillsboro City Council and state land use board, the $23 million project received approval almost two years after first proposed.

CityPlace Burlington was a formerly enclosed shopping mall. Located on the Church Street Marketplace open-air mall in Burlington, Vermont, United States, it opened in 1976. The mall's anchor stores were Macy's and L.L.Bean. The western portion of the mall closed in fall 2017 for redevelopment. The eastern portion remains standing but shuttered as of 2022.

Jay Paul Company is a privately held real estate development company, working primarily in Silicon Valley and based in San Francisco. The company holds more than 11 million square feet of office space in Silicon Valley, and growing.

<span class="mw-page-title-main">Affordable housing in Silicon Valley</span>

Silicon Valley, a region located in the southern part of the San Francisco Bay Area, is one of the most expensive regions to live in the United States, and many residents lack access to affordable housing. In 2018, the median home price across the area was $1.18 million, the highest of the 100 largest metro areas in the U.S. The growth of the technology industry in the area, including major companies like Google, Facebook, and Apple, is frequently cited as a major cause of the issue. There have been local efforts to address affordable housing, as well as state measures in response to housing issues across California.

<span class="mw-page-title-main">Orange Line (VTA)</span> Light rail line in Santa Clara County, California

The Orange Line is a light rail line in Santa Clara County, California, and part of the VTA light rail system. It serves 26 stations in the cities of Mountain View, Sunnyvale, Santa Clara, Milpitas, and San Jose, traveling between Downtown Mountain View and Alum Rock stations, stopping at Ames Research Center, Great America, and Levi's Stadium along the way. The line connects to Caltrain at Mountain View and to the Bay Area Rapid Transit (BART) system at Milpitas station. The line runs for 20 hours per day on weekdays, with headways of 15 minutes for most of the day. On weekends, the train runs at 20-minute headways for most of the day. After around 8 pm on weekdays and weekends trains run at 30-minute headways.

References

  1. ↑ "Sunnyvale, CA - CityLine Sunnyvale (Town Center)". sunnyvale.ca.gov. Retrieved 2021-04-09.
  2. 1 2 Wilson, Alia (2011-08-18). "No bidders for Sunnyvale Town Center means project in hands of Wells Fargo". Sunnyvale Sun. Retrieved 2011-08-11– via San Jose Mercury News.
  3. 1 2 Hoff, Nick (2002-09-21). "When suburban goes urban". InTheFray Magazine. Retrieved 2010-03-02.
  4. ↑ Mullins, Robert (2005-02-25). "Developers bid for site of failed Sunnyvale shopping center". Silicon Valley / San Jose Business Journal. Archived from the original on 2007-12-03.
  5. 1 2 3 Ignoffo, Mary Jo (1994). Sunnyvale: From the City of Destiny to the Heart of Silicon Valley . Local History Studies. Vol. 35. Cupertino: California History Center & Foundation. pp.  81–85. ISBN   9780935089172.
  6. 1 2 Koning, Ben; Metz, Anneke; Sunnyvale Historical Society (2010). Sunnyvale. Images of America. Charleston, South Carolina: Arcadia. ISBN   9780738574356.
  7. ↑ Rodriguez, Joe (2016-08-13) [2010-04-29]. "How trees survived Silicon Valley". San Jose Mercury News.
  8. ↑ Parsons, Scott (March 2007). "Sunnyvale Town Center - The Unauthorized Guide". Bigmallrat.com. Archived from the original on 2010-03-22.
  9. 1 2 Hansen, Jamie (2011-08-18). "Sunnyvale's Town Center Goes Up for Auction But Nobody Bids". The Bay Citizen. Archived from the original on 2016-08-13.
  10. ↑ Simonson, Sharon (2007-02-07). "New owner, revised plans OK'd for Sunnyvale's downtown". Silicon Valley Business Journal.
  11. 1 2 3 4 Carlton, Jim (2012-06-06). "Tensions Flare Over Stuck Sunnyvale Project". Wall Street Journal.
  12. ↑ Conrad, Katherine (2009-04-10). "Sunnyvale Town Center on hiatus". Silicon Valley / San Jose Business Journal. Retrieved 2010-03-02.
  13. ↑ Conrad, Katherine (2010-01-29). "Sunnyvale Town Center gets buttoned down as options are weighed". Silicon Valley / San Jose Business Journal. Retrieved 2010-03-02.
  14. ↑ Carney, Tiffany (2010-01-20). "Stalled Sunnyvale Town Center is focus of city's five-year plan". Sunnyvale Sun. Retrieved 2010-03-02.
  15. ↑ "Sunnyvale Town Center". campanellacorporation. Campanellacorporation.com. Retrieved 2010-03-02.
  16. 1 2 "Sunnyvale Town Center Update" (PDF) (pdf). City of Sunnyvale. 2012-05-24.
  17. 1 2 Simonson, Sharon (2013-02-26). "New Appeals Threaten to Stall Sunnyvale Town Center Redevelopment For Years". The Registry. p. 2. Retrieved 2016-07-12.
  18. ↑ "Downtown Sunnyvale Residential v. Wells Fargo Bank CA6" (PDF) (pdf). Court of Appeal of the State of California. 2015-01-20.
  19. ↑ "Downtown Sunnyvale Residential v. Wells Fargo Bank CA6" (PDF) (pdf). Court of Appeal of the State of California. 2015-05-19.
  20. ↑ Donato-Weinstein, Nathan (2015-05-19). "Sunnyvale Town Center ruling deals blow to Pau's Sand Hill; appeal mulled". Silicon Valley Business Journal.
  21. ↑ Donato-Weinstein, Nathan (2015-08-13). "Sunnyvale Town Center officially for sale as litigation cloud lifts". Silicon Valley Business Journal.
  22. ↑ "Proposed New Development Team Achieves Key Town Center Milestone" (PDF) (pdf). City of Sunnyvale. 2015-12-10.
  23. ↑ Kezra, Victoria (2015-12-18). "Sunnyvale Town Center's new owners get council's vote of confidence". Sunnyvale Sun– via San Jose Mercury News.
  24. ↑ Kezra, Victoria (2016-07-09). "Sunnyvale Town Center: Updated agreement could lead to completion before 2021". San Jose Mercury News.
  25. ↑ Druzin, Bryce (2016-09-29). "Sunnyvale Town Center deal closes for $100 million". Silicon Valley Business Journal.
  26. 1 2 Robertson, Michelle (2019-01-16). "Another Bay Area Macy's set to close". San Francisco Chronicle.
  27. ↑ Kezra, Victoria (2017-11-28) [2017-11-17]. "Redwood Square opens in downtown Sunnyvale". San Jose Mercury News.
  28. ↑ Avalos, George (2017-10-31). "AMC Theaters strikes deal for downtown Sunnyvale 12-screen cinema". San Jose Mercury News.
  29. ↑ Fernandez, Ryan (October 30, 2020). "Coronavirus roundup: Sunnyvale boosts downtown with major retail openings". Silicon Valley Business Journal.
  30. ↑ Avalos, George (2020-10-31) [2020-10-29]. "Coronavirus real estate: Whole Foods, AMC Theaters open in downtown Sunnyvale". San Jose Mercury News.
  31. ↑ Hanbury, Mary (2019-01-10). "Macy's is closing eight stores early this year — here's the full list". Business Insider. Retrieved 2019-01-10.
  32. ↑ Avalos, George (2020-08-18) [2020-08-12]. "Big expansion, transformation of downtown Sunnyvale pushes ahead". San Jose Mercury News.
  33. ↑ Gelhaus, Anne (2021-01-22) [2021-01-16]. "Sunnyvale community briefs for the week of Jan. 22". San Jose Mercury News.
  34. ↑ Dugan, John (December 30, 2010). "Sunnyvale says so long to 2010". San Jose Mercury News.
  35. ↑ Wilson, Alia (April 30, 2013). "Restaurants coming to downtown Sunnyvale". Sunnyvale Sun– via San Jose Mercury News.

37°22′33″N122°01′54″W / 37.37575°N 122.03166°W / 37.37575; -122.03166

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.