Costco could be coming to Newark
Wholesaler eyeing a large chunk of NewPark Mall site
NEWARK >> East Bay residents looking for a deal on a hot dog and soda combo will relish this news: Costco could be coming to Newark.
Plans for a new Costco W hole sa le Wa r ehou se have been added as part of a long- envisioned major redevelopment effort for the struggling NewPark Mall that would include hundreds of apartments and new retail space, according to documents recently submitted to the city by a developer.
Despite having a bustling warehouse located about 3 miles south in Fremont’s Pacific Commons Shopping Center, the wholesaler is considering adding a nearly 162,000- squarefoot Costco on a roughly 74-acre portion of the NewPark Mall site.
The preliminary plans submitted by Brookfield Properties, which owns the mall, call for the demolition of two large, twostory buildings on the eastern side of the mall — the 120,000-square-foot former location of J.C. Penney, and the 87,000-square-foot former location of Burlington, which was previously a Mervyn’s.
A 126,000- square-foot, two- story section of the mall also would be demolished to make room for the warehouse, which would face Interstate 880. The Costco would also include a 32-pump gas station.
“We’re excited about the possibility of a Costco in Newark, obviously, and excited to have it at the NewPark Mall,” Steven Turner, the city’s community development director, said in an interview.
A Costco spokesperson declined to comment on the project. Brookfield representatives didn’t immediatley return calls and emails seeking comment about the project.
“Costco has proposed a site here. We have to assume that they think the market could support a Costco in Newark,” Turner said.
Costco previously had a warehouse on Albrae Street just off Stevenson Boulevard in Fremont, near the border of Newark, which closed in 2005 when the larger Pacific Commons location opened. The former location is currently the home of a Walmart.
An Alameda County Superior Court judge last month ruled against a group of Pleasanton residents trying to block a proposed Costco in that city, though an appeal is still possible.
The plans for the new Newark Costco were submitted to the city in November, and the City Council this month approved new and expanded traffic and environmental studies to determine the impact of the warehouse proposal.
Brookfield’s plans also offer a new look at the first phase of residential development that is part of the city’s long-term vision to update the older, 1980sera, interior- style mall by ringing it with high- density housing, retail, office, dining and entertainment spaces.
Brookfield is planning to build 319 apartments across a five- and six-story mixed-use building on the northwestern edge of the mall property, along NewPark Mall Road and Alpenrose Drive.
The apartment complex would have units wrapped around six levels of parking, and would feature 3,700 square feet of ground floor retail, and more than 10,000 square feet of residential amenities including a club room, gym and game room.
In 2018, the Newark City Council adopted the NewPark Place Specific Plan, a document to guide the long- term revamping of the mall.
“Over the past decade, regional competition has contributed to a severe decline in mall revenues and vibrancy: Circuit City, Staples, Babies R Us, Toys R Us, TJ Maxx, Men’s Wearhouse, Cinedome Theaters and the multistory Target store all departed the mall for open air commercial ‘ power centers’ ” like Pacific Commons, the document said.
With the dominance of online shopping even before the pandemic, the document says a traditional mall “can no longer thrive on convenience” and NewPark “must become a destination centered on social, entertainment, and cultural experiences to attract people.”
Overall, the longer term plans for NewPark Place call for a total of about 1,800 residential units, 700 new hotel rooms, 200,000 square feet of new retail space and 500,000 square feet of new office space.
Of the residential units, 281 already were built across Mowry Avenue in the Prima project by D.R. Horton along Interstate 880, and two new hotels, the StayBridge Suites, and SpringHill Suites by Marriott, have recently gone up just south of the mall prop
erty.
Shirley Sisk Grove, a park to the west of the mall where concerts and events take place, also will get a revamp to include a “permanent outdoor community gathering and performance space,” according to the plan.
“Folks who want to visit a mall want to do more things than just park their car and shop,” Turner said.
“They’d like to have those experiences like eating at a nice restaurant; taking a walk on wide, landscaped sidewalks; enjoy open space in the area; and enjoy some entertainment with the family.”
The mall’s previous owners, Rouse Properties, initiated a face-lift for the mall prior to the specific plan being adopted, including adding a restaurant pavilion on the western side of the mall, John’s Incredible Pizza, which features games, rides and bowling,
and in 2016 a 12- screen AMC Theatres with IMAX opened on the northern edge of the mall.
The Sears store at the mall closed in 2018.
Turner said the city’s overall goal is to “reinvigorate NewPark Mall as the city’s main economic and retail engine” through past and coming changes.
City staffers are “looking to move quickly” on processing the development plans from Brookfield, and the council could be considering the project in late March, Turner said.
“From the city’s perspective, for this first phase, we’re just really excited that even during the pandemic, even during some times of uncertainty in the retail sector, that there’s potential and opportunity for investment at NewPark Mall,” Turner said.