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JCPenney store in San Bruno, one of the last remaining locations in the Bay Area, will close on May 25. The store at the Shops at Tanforan mall has been a fixture since 1971 and is set to be replaced by biotech labs. The closure comes as part of JCPenney's ongoing efforts to restructure and adapt to changing market conditions.
The San Bruno location was one of two anchor stores when the mall opened in 1969, replacing a historic racetrack that had served as an internment camp for Japanese Americans during World War II. The store's closure may accelerate redevelopment plans for the aging indoor mall.
Alexandria Real Estate Equities purchased the Shops at Tanforan in early 2022 for $328 million, with plans to transform it into a 2 million-square-foot biotech hub. However, progress on this project has been slow, and it is unclear if Alexandria has submitted redevelopment plans or what its current intentions are.
The life sciences sector has faced challenges in recent years, including a four-year slump that saw only three properties trade hands nationwide in the first nine months of last year. The Bay Area's life sciences market was 24.6% vacant as of June, according to CBRE.
JCPenney's struggles have been exacerbated by competition from online retailers and discount chains. The company filed for bankruptcy in 2020 and has since merged with Sparc Group to form Catalyst Brands, a new entity aiming to generate $9 billion in revenue and manage 1,800 stores nationwide.
