Located at Interstate 880 and Hegenberger Road at the entry to the Port of Oakland, the property was originally slated for Metroport, a mixed-use development consisting of one million sf of office, a four-star hotel and 100,000 sf of retail. With the office and hotel markets languishing, however, Simeon, which was selected by the Port to develop the Metroport project, received the Port's blessing to change the use of the site to pure retail.

"The current economic picture has caused us to adjust the scope of this project since we announced our original plan in 2000," said Pitto. "Quite frankly, we have allowed the market to dictate the direction and right now, retail development looks like it will be a top priority for Oakland."

Simeon President and CEO Russell Pitto tells GlobeSt.com there is still a chance the property will include an office component, but the project now is planned as 275,000- to 300,000 sf of big box retailers, restaurant pads and smaller retail tenants, all national in scope. "We are well down the line in negotiations with five different retailers," says Pitto, who estimates the cost of the development will be about $150 per sf, or between $41 million and $45 million. "This is the first of a number of retail projects in line right now."