Primestor Acquires Hilltop Plaza in Richmond for $36.5M, Eyes Mixed-Use Potential

Key Takeaway

• Primestor acquired Hilltop Plaza in Richmond for $36.5 million, equating to $148 per square foot.
• The 245,900-square-foot shopping center is 86%-88% occupied with tenants like Ross Dress for Less and Century Theatres.
• Primestor aims to leverage Richmond's new specific plan for potential mixed-use development on the site.

Primestor's Strategic Acquisition in Richmond

Primestor, a Culver City-based real estate investor, has made a significant acquisition by purchasing the 245,900-square-foot Hilltop Plaza shopping center in Richmond for $36.5 million. This transaction, which equates to $148 per square foot, underscores Primestor's commitment to investing in community-oriented projects, particularly in underserved minority markets. The shopping center, located at 3190-4251 Klose Way near I-80 and Richmond Parkway, is strategically positioned across from the larger Hilltop Mall, a site earmarked for a major mixed-use development by Prologis.

Details of the Hilltop Plaza Deal

The Hilltop Plaza acquisition involves a 59-acre site that is currently between 86 percent and 88 percent occupied by tenants such as Ross Dress for Less, City Sports Club, dd’s Discounts, and a Century Theatres movie complex. Primestor's Chief Investment Officer, Lonnie Vidaurri, highlighted the strategic nature of this infill project, noting its alignment with the firm's investment strategy of empowering communities through high-quality real estate management. The deal was brokered by JLL's Geoff Tranchina, Eric Kathrein, Gleb Lvovich, and Warren McClean, who represented both the buyer and the seller, Site Centers.

Richmond's Development Landscape

Richmond's development landscape is poised for transformation, particularly with the new specific plan that outlines development standards for the area. This plan opens up possibilities for Primestor to explore additional uses for Hilltop Plaza, potentially enhancing its value and utility. The proximity to the defunct Hilltop Mall, which Prologis acquired in 2021 for $117 million, adds another layer of strategic importance. Prologis is currently designing a mixed-use redevelopment for the 78-acre mall site, which could include housing, retail, office, hotel, industrial, and educational facilities.

Broader Implications for Retail Real Estate

The acquisition of Hilltop Plaza by Primestor is indicative of broader trends in the retail real estate market, particularly in urban and minority-focused areas. Primestor's investment strategy, which has seen over $1 billion funneled into urban, mixed-use projects, reflects a growing recognition of the value in underserved markets. This deal not only highlights the potential for retail centers in strategic locations but also underscores the importance of community-oriented development in driving real estate investment decisions.

Primestor's Vision and Future Prospects

Primestor's vision for Hilltop Plaza aligns with its broader mission of community empowerment through real estate. The firm's recent $165 million fundraise to focus on multifamily and retail properties near public transit across California further underscores its commitment to strategic, community-focused investments. As Primestor pursues additional tenants for Hilltop Plaza and explores new uses for the site, the shopping center is poised to become a cornerstone of Richmond's evolving urban landscape.

Management Quotes

• Lonnie Vidaurri, Chief Investment Officer for Primestor:

  "Hilltop Plaza represents the opportunity to acquire a strategic infill project that aligns with our investment strategy of empowering communities through the acquisition and management of institutional quality real estate. The project is characterized by high barriers to entry and a rapidly expanding minority population."

• Rhiana Lindsey, Director of Leasing for Primestor:

  "[Primestor] is pursuing additional tenants."