Flying Horse Investments Acquires Historic Downtown Berkeley Retail Asset

Flying Horse Investments LLC (“FHI”) has acquired Shattuck Plaza, a 29,187-square-foot street-front retail property at 2200–2240 Shattuck Avenue in the heart of Downtown Berkeley, California. Nicolas Bicardo from Newmark represented the seller, Hill Street Realty.

Hill Street Realty (“HSR”) originally acquired the property in October 2012, then 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 12,000 square feet 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 just one block from the UC Berkeley campus, the property’s ground-floor storefronts have remained largely inactive in recent years.

“Shattuck Plaza represents a rare opportunity to reimagine a prominent retail footprint in one of the Bay Area’s most dynamic, transit-oriented markets,” said Eric Shulman, FHI Managing Principal. “With UC Berkeley, major civic institutions, and a growing residential base driving demand, we see tremendous potential to reposition the property as a vibrant amenity hub for the community. We’re also deeply appreciative of the tremendous support we’ve received from the City of Berkeley and the Downtown Berkeley Association and look forward to working closely with both to bring our vision for this property to life.”

FHI will undertake a comprehensive renovation of the property to deliver modern, lease-ready storefronts designed to attract a diverse mix of tenants that serve the community. 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.

In addition, FHI plans to reactivate the building’s 11,430 square feet 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. 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 Avenue, 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.

About Flying Horse Investments

Flying Horse Investments LLC (FHI) is a real estate investment firm focused on acquiring, repositioning, and operating suburban necessity-based retail properties across the country. With nearly 100 years of combined institutional and private client experience, the firm pursues opportunities to create value through active management, leasing, redevelopment, and strategic partnerships. FHI leverages the institutional infrastructure of Pegasus Asset Management Inc. to provide property management, leasing, and development services that enhance returns for its investors.