Sand Hill Property Co. Buys Macy's, J.C. Penney, Sears at Vallco Mall, 2 Stores Set to Close

Three anchor stores were bought by one developer at the struggling Vallco Shopping Mall in Cupertino, as two of those stores plan to close in the near future.

The Silicon Valley Business Journal reported this week that Sand Hill Property Co. bought anchor stores Macy's, J.C. Penney and Sears , according to title records. But J.C. Penney and Sears plan to close their Cupertino locations, the Journal reported.

Macy's, J.C. Penney and Sears will continue to operate for now under a lease-back arrangement with Sand Hill, retailer representatives told the Journal. But Penney and Sears, whose parent companies have been struggling with declining sales, confirmed last week that they will be closing their Cupertino locations eventually.

Howard Riefs, a spokesman for Sears, told the Journal that the Vallco store will remain open for "most of 2015" with a final closing date to be announced next year. Joe Thomas, a spokesman for Penney, said in an email to the Journal that the store will remain open until at least March of 2016 but an exact closing date was not yet set.

The Menlo-Park based Sand Hill has long coveted the mall, the Journal reported, and is an attempt to centralize the redevelopment of the 1.3-million-square-foot Vallco. Sand Hill now controls more than half of the Vallco Mall site area, or 32 of roughly 50 acres — everything except the enclosed mall structure.

The acquisitions — valued at roughly $200 million, according to tax records, the Journal reported.

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