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11/07/25
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Los Angeles-based Flying Horse Investments LLC (FHI) has acquired Shattuck Plaza, a 29.2k sf, street-front retail property in the heart of Downtown Berkeley. The property is located at 2200–2240 Shattuck Ave, just one block from the University of California, Berkeley campus.
Image: Flying Horse Investments |
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The property had been acquired by Hill Street Realty (HSR) back in October 2012, when it consisted of a collection of interconnected retail, office, and entertainment spaces that included the historic Shattuck Cinemas and an adjoining office tower. In 2013, HSR proposed an 18-story, mixed-use project featuring 302 residential units and 12k sf of new retail. However, after years of delays, ownership ultimately cancelled the project in early 2020.
In March 2021, following a complex condominium line adjustment that formally separated the retail portion from the movie theater and office components, HSR sold the latter to Article Student Living while retaining ownership of the retail frontage, until now. With this transaction, FHI has acquired the long-dormant retail component, finally setting the stage for meaningful reinvestment after more than 13 years of uncertainty and unrealized potential.
Once a hub of downtown activity, the site had become a symbol of untapped potential, its vacant spaces leaving the community eager to see the property restored to its former prominence. The surrounding neighborhood has long awaited ownership that would intentionally curate tenants and amenities to meet local needs and restore the property as a valuable resource for residents, students, and visitors alike. Yet, despite its prime location adjacent to the Downtown Berkeley BART Station and the UC Berkeley campus, the property’s ground-floor storefronts have remained largely inactive in recent years. Today, the property is completely vacant, providing a rare opportunity for a full-scale repositioning without the constraints of legacy tenancy.
FHI will undertake a comprehensive renovation of the property, supported by a seven-figure capital improvement budget, to deliver modern, lease-ready storefronts on the 17.8k sf, ground-level designed to attract a diverse mix of tenants that serve the community. FHI also plans to reactivate the building’s 11.4k sf of lower-level space, formerly home to the Habitot Children’s Museum, for uses such as fitness, wellness, and education — further anchoring the property as a community-serving destination. Renovation work is expected to commence immediately, with FHI targeting approximately six to nine months for initial building upgrades and another six to nine months for tenant buildouts, subject to permitting and city approvals.
D-Scheme Studio (architect) and Aecore Inc (general contractor) will lead the redevelopment, with Pegasus Asset Management overseeing property and construction management. Leasing will be handled by The Econic Company, a Bay Area retail specialist with deep ties to the corridor. The acquisition was financed by Bolour Associates, with Pegasus Capital Markets acting as exclusive debt advisor.
The property boasts over 300 linear feet of frontage along Shattuck Ave, Downtown Berkeley’s most vital commercial corridor, known for its mix of shopping, dining, entertainment, and access to transit. The surrounding area has experienced notable revitalization, driven by new residential and mixed-use developments that have added urban density and vibrancy. The property is well-positioned to benefit from strong foot traffic and demand fueled by the local population.
“This acquisition underscores our strategy of targeting necessity-based retail properties in growth markets with high barriers to entry,” added Joe Spicer, FHI Managing Principal. “By combining our investment expertise with Pegasus Asset Management’s institutional platform for property management, leasing, and development, we are uniquely positioned to unlock the full potential of this asset.”
After more than a decade of proposals, delays, and changing ownership structures, the acquisition of Shattuck Plaza marks a turning point for this highly visible downtown property — one that will finally see new life under an ownership group committed to long-term stewardship and community-focused revitalization.
Nicolas Bicardo from Newmark represented the seller, Hill Street Realty, in this latest transaction.
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