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According to The Mercury News, the San Leandro mall, whose tenants include retailers, industrial and tech startups has been bought by affiliates of Blackstone Real Estate and its retail unit ShopCore Properties for $87 million in cash. The two-story Westgate Shopping Center has an industrial history as it was once a manufacturing plant for Plymouths and tractors.

“This is a strongly performing retail asset that’s important for San Leandro’s economy,” said Katie Bowman, the city’s economic development manager. “It’s also a great opportunity for startups and creative businesses.”

ScanlanKemperBard, or SKB, a Portland, Ore.-based realty firm, converted the upper floor into numerous small spaces for tech startups, creative artists and small industrial companies. The ground floor is fully leased to traditional big box retailers such as Home Depot, Office Depot, Burlington, and Ross Dress for Less. “It’s a creative use of an old manufacturing plant,” Bowman said.

Now, small companies devoted to an eclectic array of products that include virtual realty technology, drones, food, coffee and 3-D printers have sprouted in the upstairs section, which is almost completely leased. This startup second-floor section of the mall is branded as 510gate.

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