By Khalida Sarwari
CityLine, the lead developer of a project aimed at revitalizing downtown Sunnyvale, has closed escrow on the purchase of Macy’s two-story building from Sand Hill Property Co., a move that solidifies its control of the 36-acre project.
Sunnyvale Councilman Jim Griffith said that under existing agreements, the owner of the Macy’s property has certain veto rights over development plans in downtown.
Deke Hunter, co-owner of CityLine, said conversations with Sand Hill about transferring ownership of the Macy’s started six months ago. CityLine’s acquisition of Macy’s will considerably ease the approval process for the next stages of the project, he said.
“We came to a similar conclusion that having too many property owners could be cumbersome,” he said. “By having control of the Macy’s as part of our project, it adds certainty that the final plan gets built.”
Sand Hill had planned to remodel the building and add office space on the ground floor instead of reserving it for just retail. Hunter suggested Macy’s future after its lease ends is “very uncertain.”
After numerous starts and stops over the past decade, the project was given new life two years ago when CityLine assumed ownership. Formerly known as the Sunnyvale Town Center and renamed CityLine Sunnyvale, the developer’s plans call for establishing a six-block, mixed-use development that includes retail, dining and entertainment.
Last year, Redwood Square, a public space bedecked with redwood trees, walking paths and benches, including a solar-powered bench, opened across from McKinley Avenue and Target. The focus this year will be on starting construction on three residential buildings, including 75 studio and one- and two-bedroom apartments and 19 three-bedroom townhomes along West Iowa Avenue between Mathilda and Sunnyvale avenues.
Once completed by summer 2019, the site will also feature a Whole Foods Market and AMC Theatres.
The news about CityLine’s purchase was received favorably by city officials and residents alike.
“We look forward to continuing to work with all downtown property owners to realize our vision of a vibrant downtown,” said Sunnyvale Mayor Glenn Hendricks.
Chris Beres, a resident of Sunnyvale, was cautiously optimistic about the news.
“I think the sale is great as long as they keep Macy’s in Sunnyvale,” Beres said. “They need more retail stores downtown so we can call it a downtown, someplace to go shopping.”
Richard Mehlinger, another Sunnyvale resident, said he is glad to see the project moving forward.
“It sounds like this sale will bring everything under the same owner and hopefully that’ll mean they’ll better coordinate what they’re doing over there,” he said. “I’m very excited to hear what they propose for it.”
Link:
Sand Hill sells Macy’s to lead developer of downtown Sunnyvale project
