Hayward's Southland Mall, a prominent East Bay shopping center, has been acquired for $70 million in an all-cash transaction. The new owner is an affiliate of Namdar Realty Group, a New York-based firm known for purchasing underperforming retail properties across the country.
The sale, finalized through documents filed with the Alameda County Recorder’s Office on October 24, transfers ownership from an affiliate of Brookfield Properties. The deal raises questions about the future direction of the 1.1 million-square-foot retail hub, given the new owner's distinct investment strategy.
Key Takeaways
- Southland Mall in Hayward was sold for $70 million in an all-cash deal.
- The buyer is an affiliate of Namdar Realty Group, a firm specializing in value-added or distressed commercial properties.
- The mall's anchor tenants include Macy’s, JCPenney, and Cinemark, with a former Sears store remaining vacant.
- Namdar Realty Group has faced scrutiny from officials in other cities over its management of similar mall properties.
Details of the Acquisition
The transaction places the sprawling regional mall under the control of a company with a specific and often controversial approach to real estate. According to public records, the purchase was made without any financing, signaling a significant capital investment from the buyers.
Southland Mall is strategically located near the interchange of Interstate 880 and West Winton Avenue, a high-traffic area that has long made it a key retail destination in the region. The previous owner, Brookfield Properties, had highlighted the mall's strong position, noting its high visibility and limited competition within a 20-mile radius.
In a marketing statement, Brookfield described the center as "uniquely positioned," citing restricted land supply in the area as a barrier to new development that could challenge the mall's market share.
State of Southland Mall
The shopping center currently houses several major anchor tenants that draw significant foot traffic. The primary merchants include Macy’s, JCPenney, Ross Dress for Less, and Hobby Lobby, which recently occupied a space formerly held by Dick’s Sporting Goods. A Cinemark movie theater complex also serves as a major attraction.
Southland Mall by the Numbers
- Sale Price: $70 million
- Total Space: 1.1 million square feet
- Key Tenants: Macy’s, JCPenney, Hobby Lobby, Cinemark
- Major Vacancy: Former Sears store (closed in 2020)
Despite these established tenants, the mall is not without challenges. A large anchor space previously occupied by Sears has remained empty since the retailer closed its doors in 2020. The Sears store was an original part of the mall's footprint when it was first developed in the 1960s, making its vacancy particularly notable.
The successful integration of a new tenant into this large, empty space will likely be a key factor in the mall's future performance under its new ownership.
The New Owner's Strategy
Namdar Realty Group, the firm behind the purchase, openly describes its business model as focusing on "value-added commercial properties." This term typically refers to real estate assets that are underperforming and can be acquired at a low cost.
What Are Value-Added Properties?
In commercial real estate, a "value-added" strategy involves buying a property that has operational or management issues, is not fully leased, or needs physical improvements. The investor aims to increase the property's value by making upgrades, improving management, or signing new tenants, with the goal of generating higher income and eventually selling it for a profit.
The company's investment philosophy is to identify and purchase overlooked malls and shopping centers. The goal is often to implement improvements or strategic changes to increase the property's value and cash flow. However, this approach has not always aligned with the expectations of local communities.
A History of Municipal Friction
Namdar's management of other properties has sometimes led to conflicts with city officials. In one notable case, the city of Citrus Heights in Sacramento County initiated an appraisal of Sunrise Mall in August 2025. This action was a preliminary step toward potential condemnation proceedings against the portion of the mall owned by a Namdar affiliate.
Citrus Heights officials detailed their concerns in a public statement. "In response to continued community complaints, city staff inspected the Namdar-owned portion of the property in May 2025, resulting in extensive violations and a notice to abate issued the following month," the city stated. Officials there are exploring options to redevelop the struggling retail center.
Future Outlook and Investment Approach
While Namdar Realty Group has not released a specific plan for Southland Mall, the company's broader strategy offers some clues. In a June 2024 interview with Bloomberg TV, CEO Igal Namdar confirmed the company's continued focus on acquiring low-valued assets, including distressed office properties, in addition to retail centers.
Mr. Namdar also provided insight into the company's financial structure, noting its diverse sources of capital. Beyond traditional U.S. financing from banks and pension funds, Namdar has access to international investment.
"We are able to have access to Israel money as well," Igal Namdar stated in the interview, referencing a publicly held company in Israel that provides another avenue for funding.
This access to diverse capital streams may give the company flexibility in how it manages and potentially redevelops its properties. For the city of Hayward and local residents, the sale marks a new chapter for Southland Mall. The community will be watching closely to see what changes the new ownership will bring to one of the area's most significant retail landmarks.
