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Hunter Properties has acquired Sequoia Station, what was to become a prominent transit-oriented, mixed-use development near downtown, for $53 million and plans to renovate and fully occupy the shopping center’s roughly 30% vacant space.
The purchase took place last week, the developer confirmed.
Curtis Leigh, Hunter Properties principal, said the 6.65 acres of Sequoia Station will remain a shopping center for the foreseeable future.
"We would like to reenergize the center with painting and signage. In the last few years, the previous developer was going to tear it all down, and they haven't put money into the center," Leigh said, referring to developer Lowe Enterprises, which purchased Sequoia Station in 2021.
Hunter Properties is a development arm of Hunter Storm, a commercial real estate development firm founded in 1960 by Deke Hunter. The firm focuses on Bay Area development and is known for its high-rise buildings in downtown San Jose. In Redwood City, Hunter Properties owns the Redwood City Technology Station and University Station and Crossing 900, commonly known as the Box Inc. building.
Sequoia Shopping Center is roughly 12 acres and divided into two parcels: Safeway’s 5.43-acre parcel and the adjoining 6.65 acres, newly acquired by Hunter Properties, which includes 25 commercial spaces and 326 parking stalls.
Leigh said part of the property's renovation will include reimagining vacant spaces like the former Pier 1 Imports building on the southeast corner of the lot behind Safeway. He also said they may break up the former Old Navy building, which is vacant, into multiple commercial units as it will work to fill vacancies.
Because most retailers look for a 10-year lease, Leigh said that for the next decade, the center can be expected to stay generally the same.
Lowe Enterprises had plans to transform the shopping center into a transit-oriented, mixed-use development, dividing the property into six new blocks with 631 multi-family residential units, 254 of which would have been affordable. Another 1.2 million square feet would have been reserved for office space, and 166,000 square feet of retail space and nearly 90,000 square feet of public open space.
Jeff Schwob, Redwood City’s community development director, said the new owners of Sequoia Station met with the city on Thursday, Dec. 21. He added that the developers and the city plan to chat about short and long-term plans after the holidays.
“The implication was they understand that the City Council has strategic goals, and housing and transit-oriented development is part of that. (Hunter Properties) want to work with us, but it may take longer,” Schwob said.
Schwob said the COVID-19 pandemic changed the need for office space as companies continue to allow their employees to work from home. However, he believes the city and the developer could explore opportunities down the line that could reimagine how the property is used.
The city needs to plan for more than 4,500 new affordable housing units by 2031, part of the state's law to address the housing and jobs imbalance, according to its website.
The city approved its downtown precise plan, which appeared to anticipate the redevelopment of the Sequoia Station property. The precise downtown plan approved in November 2023 allows buildings in the shopping center to reach heights of 136 feet at their peak.
The city also allowed the construction of a new street through the middle of the property in the plan, which aligned with Lowe's redevelopment proposal, according to the city's downtown precise plan.
However, Schwob said the project was never fully entitled.
Jeremy Levine, Housing Leadership Council of San Mateo County policy manager, said Redwood City isn’t the only city seeing developers' plans change.
“We are in a tough market right now,” Levine said. “It's definitely a challenging environment for developers.”
