Simon Looks to Expand Stanford Center
The struggling economy isn’t putting the brakes on expansion plans for some retail developers.
Executives at Indianapolis-based Simon Property Group said they are moving forward with a plan to expand the company’s Stanford Shopping Center in Palo Alto, Calif.
The real estate investment trust (REIT) plans to build an additional 250,000 square feet of retail space as well as a 120-unit hotel. Simon bought the 1.4 million-square foot center for $330 million in 2003. Bloomingdale’s, Nordstrom, Macy’s and Neiman Marcus anchor the center.
A Simon spokesperson said the REIT is currently working with consultants on drafting a city-required environmental-impact report, which will tell Palo Alto officials how much traffic the added stores and hotel would create as well as other effects, such as energy usage and water runoff.
Once the city approves the environmental report, which is expected to occur in the coming months, the project should move forward pending any mitigation measures that may be required from the report.
“Once completed with the city of Palo Alto, we will begin selecting fresh, new and exciting merchants and restaurateurs that will appeal to the discerning Palo Alto market to join our world-class project,” said Simon officials in a statement. “To date, there has been strong interest expressed from retailers and restaurants. But before we can finalize our next steps for development, there are many factors, including economic conditions and any requirements by the City Council, before we can move forward.”
Palo Alto officials said preliminary timetables call for the expansion to be completed in 2015. The current site plan is to develop the additional retail space in multiple buildings along El Camino Real Avenue. The hotel is expected to be built at the corner of Quarry and Arboretum roads.
Despite the economic downturn, Palo Alto’s demographics remain strong. According to 2007 data, average family incomes top $150,000. The average home price in 2006 was $1.2 million.
Simon owns five shopping centers in the Bay Area and owns or has an interest in more than 320 others. —Robert McAllister
