Sunset Esplanade

Sunset Esplanade is an outdoor shopping center located at the intersection of Tualatin Valley Highway and Minter Bridge Road in southeast Hillsboro, Oregon. Developed by Real Property Resources, Inc., the center was planned during the 1980s as a substantial retail project on land that had largely been farmland. It opened in 1989 after a lengthy approval process shaped by opposition from nearby residents, who raised concerns about traffic, road extensions, housing density, and the compatibility of a large commercial development with established single-family neighborhoods. The project evolved considerably during planning. Early concepts included a larger, partially covered mall with residential development on portions of the site. In response to community objections, the developers removed the proposed apartment component and redirected additional land toward commercial use. Hillsboro planning authorities and the city council ultimately approved the required comprehensive-plan and land-use changes, while appeals were also considered by the Oregon State Land Use Board of Appeals. The final scheme was an approximately 312,000-square-foot open-air center with a long east-west arrangement of buildings, additional highway-facing structures, substantial parking, and infrastructure improvements including new traffic signals. At opening, Sunset Esplanade was anchored by Target and Lamonts, with other tenants including Safeway, PayLess Drugs, and Seafirst Bank. The center became an important suburban retail destination and was associated with the relocation of some businesses from downtown Hillsboro, including Safeway. Its retail mix changed over time as national chains and local-serving retailers occupied the property. A 1991 expansion enlarged one of the center's buildings, and later tenants included Rite Aid, Factory 2U, Jo-Ann Fabrics, Petco, and other service and specialty retailers. Target owns its own store and the underlying portion of the property, which has generally been treated separately from the center's leasable area. Ownership changed several times. The Kuwaiti Investment Authority, through Bay 605 Corp., acquired the center in 1992. Bay 605 sold it to Pan Pacific Retail Properties in 2002, and Pan Pacific was subsequently acquired by Kimco Realty Corporation in 2006. Kimco later sold part of the property to Israel-based BIG Group in 2010. Physical changes in the late 2010s included a new approximately 6,500-square-foot building in 2017 and a McDonald's added to a former parking area in 2018. Pine Tree purchased the center in March 2022. The center comprises roughly 261,000 square feet of gross leasable area, with Target occupying an additional approximately 102,000 square feet, and has about 2,090 parking spaces. Its principal anchors have included Target, Ross Stores, Rite Aid, and Safeway, although the tenant roster has changed over the decades. Sunset Esplanade remains a neighborhood and regional retail property rather than a consumer packaged-goods brand, with its identity derived from its location, open-air format, anchor tenants, and service-oriented tenant mix.

Sunset Esplanade originated in a major Hillsboro land-development proposal announced by Real Property Resources, Inc. in January 1986. The developer investigated constructing a shopping center on roughly 100 acres at what was then Southeast 21st Avenue and Tualatin Valley Highway. The tract was mostly farmland, with about 32 acres designated for commercial use and the remainder designated for residential development. Early concepts contemplated a center of up to 300,000 square feet and left open the possibility of developing apartments or other housing on the residential portion. The proposal quickly encountered opposition from surrounding residents. Neighbors objected to the proposed apartment component, arguing that higher-density housing would not fit with nearby single-family neighborhoods. They also opposed a planned extension of Cypress Street, which would have transformed a dead-end road into a collector route connecting Main Street and Tualatin Valley Highway through 32nd Avenue. Traffic generated by the proposed retail complex and the project's relationship to existing neighborhoods became central issues in the public debate. In May 1986, Real Property Resources removed the apartment proposal and proposed using nearly 12 acres that had been considered for housing for additional commercial development. Plans at different stages ranged from an open-air center of approximately 350,000 square feet to a covered mall with four anchors and as much as 400,000 square feet. The developer's changing designs and land-use requests led the Hillsboro Planning Commission to delay decisions several times while public concerns were considered. Low-density housing remained part of the broader development concept for some of the remaining parcel. The Planning Commission approved a comprehensive-plan change in August 1986, allowing some land previously designated for residential use to support the shopping center. That decision was affirmed the following month. In November, the Hillsboro City Council voted unanimously to authorize the conversion of approximately 12 acres to commercial use. Opponents appealed to the Oregon State Land Use Board of Appeals in December 1986. The developers formally requested the corresponding zoning change in January 1987, generating further objections. After LUBA accepted most of the city's position and the city held additional hearings, final development approval was granted in August 1987. Final plans presented in November 1987 called for a roughly 312,000-square-foot open-air center extending approximately 2,000 feet and set back from Tualatin Valley Highway, with six additional buildings nearer the highway. The project received the name Sunset Esplanade, and Target and Lamonts were announced as anchor tenants. Development was estimated at approximately $22 million and was projected to create about 770 full-time jobs. Portland-based Benner Stange Associates served as architect and Wilsey and Ham as engineers. Infrastructure work included about $1 million in area improvements and two new traffic signals on Tualatin Valley Highway. The developers purchased the land in February 1988. Target was designed for approximately 102,000 square feet and Lamonts for approximately 45,000 square feet, with room for three more anchors. Sunset Esplanade opened in 1989. Its initial tenant mix included Target, Lamonts, Safeway, PayLess Drugs, and Seafirst Bank. PayLess used the new location to introduce a new store format in Oregon. The center's arrival affected the broader Hillsboro retail landscape, and several businesses, including Safeway, moved from downtown to the new suburban development. The property expanded in 1991, when approximately 6,000 square feet were added to Building B. In November 1989, the original developers nearly sold the center to an undisclosed California trust in a transaction reported at between $21 million and $25 million, although the deal did not ultimately establish a lasting ownership change. Target's store was excluded from the contemplated sale because Target owned both its building and approximately eight acres. In May 1992, Bay 605 Corp., acting through the Kuwaiti Investment Authority, acquired the shopping center for nearly $21 million. The center was sold again in February 2002 to Pan Pacific Retail Properties for approximately $28.6 million. The transaction involved about 256,000 square feet of leasable space, while Target's separately owned store remained outside that figure. At the time, the property was reported to be 98 percent leased and had attracted ten offers. Pan Pacific was acquired by Kimco Realty Corporation in 2006, and Kimco later sold part of the mall to BIG Group in 2010. The center experienced isolated public-safety incidents in 2009, including extensive vandalism attributed to three teenagers and a stabbing following a dispute involving an Oakland Raiders hat. These incidents did not alter the center's basic retail function. Physical redevelopment continued in the late 2010s: a new approximately 6,500-square-foot building was added in 2017 on the southeast corner, replacing a former oil-change and car-wash building, and a McDonald's was added in 2018 on part of a former parking area. Pine Tree purchased Sunset Esplanade in March 2022. The property now consists of an open-air retail complex with approximately 261,000 square feet of gross leasable area, plus Target's separately owned approximately 102,000-square-foot facility, and roughly 2,090 parking spaces. Principal anchors have included Target, Ross Stores, Rite Aid, and Safeway. Other tenants have changed over time, with former occupants including Jo-Ann Fabrics, Fashion Bug, El Pollo Loco, Staples, Emporium, and Tuesday Morning. The center continues to serve as a suburban shopping and services destination in Hillsboro.

• 2022

  Pine Tree acquired Sunset Esplanade

  [1]Sunset Esplanadeen.wikipedia.org

  Pine Tree purchased the shopping center in March.

• 2018

  McDonald's added

  [1]Sunset Esplanadeen.wikipedia.org

  A McDonald's was developed on part of a former parking area.

• 2017

  Southeast-corner building added

  [1]Sunset Esplanadeen.wikipedia.org

  A new approximately 6,500-square-foot building replaced a former automotive-service structure.

• 2010

  Part of the property sold to BIG Group

  [1]Sunset Esplanadeen.wikipedia.org

  Kimco sold part of the shopping center to Israel-based BIG Group.

• 2006

  Kimco Realty became the parent owner of Pan Pacific

  [1]Sunset Esplanadeen.wikipedia.org

  Kimco Realty Corporation acquired Pan Pacific Retail Properties.

• 2002

  Pan Pacific Retail Properties acquired the center

  [1]Sunset Esplanadeen.wikipedia.org

  Pan Pacific Retail Properties purchased the center from Bay 605 Corp.

• 1992

  Bay 605 Corp. acquired the center

  [1]Sunset Esplanadeen.wikipedia.org

  The Kuwaiti Investment Authority, through Bay 605 Corp., purchased Sunset Esplanade.

• 1991

  First recorded expansion

  [1]Sunset Esplanadeen.wikipedia.org

  Building B was expanded by approximately 6,000 square feet.

• 1989

  Shopping center opened

  [1]Sunset Esplanadeen.wikipedia.org

  Sunset Esplanade opened as a large open-air retail center serving Hillsboro and nearby communities.

• 1988

  Development site purchased

  [1]Sunset Esplanadeen.wikipedia.org

  Real Property Resources acquired the land for the center and proceeded with construction.

• 1987

  Final development approval granted

  [1]Sunset Esplanadeen.wikipedia.org

  Following appeals and additional hearings, the city approved development of the shopping center.

• 1987

  Sunset Esplanade name and anchor tenants announced

  [1]Sunset Esplanadeen.wikipedia.org

  Final plans identified the open-air center as Sunset Esplanade and named Target and Lamonts as anchor tenants.

• 1986

  Initial shopping-center proposal announced

  [1]Sunset Esplanadeen.wikipedia.org

  Real Property Resources, Inc. began investigating a shopping center on approximately 100 acres of farmland in southeast Hillsboro.

• 1986

  Residential land-use conversion approved

  [1]Sunset Esplanadeen.wikipedia.org

  Hillsboro planning authorities and the city council approved comprehensive-plan changes allowing roughly 12 acres to support commercial development.

A convenience-oriented suburban open-air shopping center serving Hillsboro and nearby communities through a combination of national anchor retailers, grocery, pharmacy, specialty stores, restaurants, and services.

• Anchor department store · 1989

  Target

  Target has been one of Sunset Esplanade's principal anchors since the center's development. Its approximately 102,000-square-foot store is separately owned by Target, along with the associated land, and is therefore generally excluded from figures describing the center's directly leasable area. The store provides general merchandise, household goods, apparel, groceries, and related services.

• Grocery store · 1989

  Safeway

  Safeway was an early tenant and a significant grocery anchor at Sunset Esplanade. Its relocation from downtown Hillsboro to the center illustrated the shift in local retail activity toward the suburban complex. The store serves routine food, household, and pharmacy-related shopping needs.

• Off-price apparel retailer

  Ross Stores

  Ross Stores has been identified as one of Sunset Esplanade's principal anchor tenants. The off-price format complements the center's broader convenience and value-oriented retail mix by offering discounted apparel, footwear, accessories, and home merchandise.

• Pharmacy and drugstore

  Rite Aid

  Rite Aid has served as a major drugstore anchor at the center, providing prescription services, health products, personal-care goods, and convenience merchandise. It followed the earlier PayLess Drugs presence in the center's pharmacy-oriented tenant mix.

• Department store · 1989

  Lamonts

  Lamonts was one of the two anchor tenants announced during the final planning phase and occupied a planned approximately 45,000-square-foot store. The department-store chain was part of the center's original opening-era positioning, although it is a former tenant.

• Drugstore · 1989

  PayLess Drugs

  PayLess Drugs was an opening-era tenant and used its Sunset Esplanade store to introduce a new format in Oregon. Its presence gave the center an important pharmacy and everyday-needs component during its first operating period.

• 2018

  Add a McDonald's restaurantOther

  Background

  Part of the center's parking area was identified for additional commercial use.

  Action taken

  A McDonald's was added to the former parking area.

  Aftermath

  The project broadened the center's food-service offering and reduced a portion of its previous parking footprint.

  Source

• 2017

  Redevelop the southeast cornerOther

  Background

  A former oil-change and car-wash building occupied part of the southeast corner of the property.

  Action taken

  The former structure was replaced with an approximately 6,500-square-foot retail building.

  Aftermath

  The replacement building accommodated new storefronts, including a Jersey Mike's location.

  Source

• 1991

  Expand Building BOther

  Background

  The center adjusted its physical footprint after opening as tenant requirements and retail demand developed.

  Action taken

  Approximately 6,000 square feet were added to Building B.

  Aftermath

  The building reached approximately 15,000 square feet and was later associated with tenants including Petco.

  Source

• 1987

  Adopt an open-air center designStrategy

  Background

  Early concepts included a covered mall with multiple anchors, while later plans responded to site conditions, neighborhood concerns, and the intended suburban setting.

  Action taken

  The final design specified an approximately 312,000-square-foot open-air center set back from Tualatin Valley Highway, with additional highway-facing buildings.

  Aftermath

  The open-air format became the defining physical and commercial identity of Sunset Esplanade.

  Source

• 1986

  Replace proposed apartments with additional commercial spaceStrategy

  Background

  The original site concept included possible apartment development, but nearby residents opposed the anticipated density and its relationship to surrounding single-family neighborhoods.

  Action taken

  Real Property Resources removed the apartment component and proposed using nearly 12 acres for additional commercial development.

  Aftermath

  The revised plan remained controversial but ultimately supported the approvals required for the shopping center.

  Source

1. 1Sunset Esplanadeen.wikipedia.org
2. 2Sunset Esplanade official websitesunsetesplanade.com