March 10, 2006

Walgreen’s opens at Evergreen Village

Shapell in talks with city to build additional 40,000 square feet of retail

Shapell Homes Division President Chris Truebridge announced the opening of a Walgreen Co. pharmacy store at Evergreen Village in the Evergreen Hills community of East San Jose.

The 14,000-square-foot store complements the neighborhood-serving retail center that is anchored by Lunardi’s Supermarket and a host of other merchants.

About a year ago, Shapell sold a one-acre site to Browman Development of Oakland, which built a two-story building that is nearly 20,000 square feet. Walgreen’s leased and occupied the majority of the first floor. A dentist and optometrist plan to occupy the street level of the property with Walgreen’s, while a home loan center has leased space on the second floor. The new building is now fully leased.

In addition to the upscale Lunardi’s market, retail and office merchants at Evergreen Village include Bank of America, Washington Mutual, Chicago Title, and Silver Creek Fitness. There is also a Great Clips, Quizno’s and Century 21 Real Estate office.

Shapell is also in late-stage discussions with the City of San Jose to build the final 40,000 square feet of retail space at Evergreen Village. The company and city are working toward a planned development agreement (PDA) that would allow Shapell to start construction of the new retail space later this year. Mike Messinger of Meacham Oppenheimer Inc. represents Shapell in marketing and leasing retail space at Evergreen Village. Mr. Messinger represented Shapell and Browman Development in the land sale of the Walgreen’s site.

In February 2003, Shapell donated the park at Evergreen Village to the City of San Jose as part of its 1992 development agreement to create the master-planned community that has become Evergreen Hills. Since the park dedication, the space, with a large fountain as its centerpiece, was renamed The Plaza at Evergreen Village. The park features seating under covered trellises, board game tables and landscaped features. The plaza is sited on an arterial roundabout, with the commercial space surrounding it. It is one of two primary entrances to Evergreen Hills and provides community gathering space for strolling and leisure activity.