Major 'urban outlet’ retail center planned for Candlestick Point

A 500,000 square-foot "urban outlet" shopping center, seen here in an artist's rendering, will be built at Candlestick Point under a new agreement reached between home builder Lennar Corp. and retail developer Macerich. less A 500,000 square-foot "urban outlet" shopping center, seen here in an artist's rendering, will be built at Candlestick Point under a new agreement reached between home builder Lennar Corp. and retail developer ... more Photo: Lennar Corp./Macerich Photo: Lennar Corp./Macerich Image 1 of / 79 Caption Close Major 'urban outlet’ retail center planned for Candlestick Point 1 / 79 Back to Gallery

The former stadium at Candlestick Point will become home to a 500,000-square-foot “urban outlet” shopping center under a new agreement reached between home builder Lennar Corp. and retail developer Macerich.

The shopping center would be designed as a pedestrian-friendly retail anchor for a $1 billion development that will eventually include 6,000 homes and create more than 3,000 jobs.

The project would feature neighborhood retailers, restaurants, an African-diaspora-themed marketplace, movie theaters, a performance venue and hotel. It also would include rental and for-sale homes, according to Lennar. Unlike most outlet centers, Candlestick Point will be dense, with underground parking and housing and entertainment above the stores.

“It’s a very urban kind of concept — rather different from a typical outlet center,” said Kofi Bonner, president of Lennar’s San Francisco division.

The retail center, slated to open in 2017, would serve the thousands of residences that are being built both at Candlestick Point and up the hill on the former Hunters Point Shipyard property. Between the two properties, the Shipyard and Candlestick Point, up to 12,000 housing units would be built over the next 10 to 20 years.

Lennar is wrapping up construction on the first 88 units at Hunters Point, dubbed the Shipyard. The first phase of that development includes 1,400 homes, 16 pocket parks and 25 acres of open space. A 63-unit affordable housing broke ground last week. One third of all the housing in Candlestick and Hunters Point Shipyard will be below market rate.

Lennar and Macerich are equal partners in the urban outlet portion of the mixed-use development. San Francisco Mayor Ed Lee is to announce the deal Monday.

Randy Brant, Macerich’s executive vice president of real estate, called Candlestick Point “a prime location in one of the strongest regional economies.”

Macerich developed Broadway Plaza in Walnut Creek, Santa Monica Place and the Village at Corte Madera.

The Candlestick Point agreement with Macerich “jump-starts the overall Candlestick redevelopment,” Bonner said.

“Macerich has a rich history of developing and operating high-quality retail environments in urban centers, not to mention the company’s strong track record in the outlet space,” Bonner said. “We’re delighted to have them as a partner. We think this will create one of the Bay Area’s great destinations.”

Initial work for the project is to start this winter when demolition crews begin knocking down Candlestick Park. That will take three months. It’s the start of a $1 billion investment over the next four years, which will include basic infrastructure — water, sewer, roads, sidewalks and streetlights — as well as sites for community use, including both a fire and police station. “You can’t build retail in pieces — our plan is to build it all together,” Bonner said.

Infrastructure work by Lennar is already under way in preparation for the complete rebuilding of the nearby Alice Griffith affordable-housing community. Construction of Alice Griffith housing is expected to begin next year.

Macerich specializes in urban developments, having built similar projects in Chicago and Queens, N.Y. The group recent announced the Fashion Outlets of Niagara Falls, which will include Saks Off 5th outlet, Barneys New York, Burberry, Hugo Boss, J. Crew, Kate Spade, Michael Kors, Nike Factory Store, UnderArmour and others.

J.K. Dineen is a San Francisco Chronicle staff writer. E-mail: jdineen@sfchronicle.com

Twitter: @sfjkdineen