DANVILLE, CALIFORNIA – Readers keep writing in to ask about this, and we’ve seen it all over social media: rumors are flying that the struggling Blackhawk Plaza shopping center is about to become a condo development.
Apparently the rumors are so pervasive that Contra Costa’s County Supervisor Candace Andersen decided her office needed to weigh in, and put some official statements behind the swirling speculation.
“Residents may have heard about lawsuits, foreclosures, and financial issues concerning Blackhawk Plaza,” Andersen’s office said in their statement.
Andersen said her office has been getting “numerous inquiries” about whether the plaza could be redeveloped into housing.
So, is the rumor true? Is Blackhawk Plaza going to become housing?
The truth, it turns out, is complicated.
Andersen’s statement makes clear that nothing is going to happen right away. No redevelopment or housing applications have been submitted, and the county will post updates if that changes. She also noted the ongoing litigation could take “several years” to resolve.
“At this time the County has not received any applications to build housing or otherwise redevelop Blackhawk Plaza,” Andersen’s statement says.
Where does the rumor come from? And is there any truth to it–even if it’s more of a future thing?
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Blackhawk Plaza has reportedly been under increasing financial and legal strain, with reporting describing foreclosure pressure and court fights tied to loans on the property. A Pleasanton Weekly report described a lender effort tied to a roughly $5 million loan and a request to place the property into receivership.
More recently, The Real Deal reported that Blackhawk Plaza faces “double default” distress, including loan default notices totaling $31 million filed by the main lender, on top of the Nano Banc loan issues.
And the plaza’s tenant troubles have been very public. Draeger’s Market closed its Danville location in late January after blaming declining conditions and vacancies.
There is also the movie theater saga. The former theatre closed. Then Apple Cinemas said they would open a new theatre there. Then Apple sued them. Now the future of the cinema is in limbo, with all indications that it won’t happen.
Put all of that together — legal drama, lender pressure, vacancies, major closures — and it’s not surprising that “it must be turning into housing” became the default rumor.
Still, the idea of turning Blackhawk Plaza into housing isn’t off the table. So while it’s not happening right away, Andersen’s statement goes on to explore whether it could happen in the future.
According to Andersen’s statement, Blackhawk Plaza’s General Plan land use designation is Mixed-Use Medium Density, which allows projects that are commercial, residential, or mixed, at 30-75 residences per acre (plus whatever additional density might apply under California’s Density Bonus law).
An Open Space buffer might get in the way, although the county is exploring whether it controls the open space.
The FAQ also notes zoning is subordinate to the General Plan when there is a conflict, and that recent state legislation can reduce or eliminate rezoning requirements for certain housing proposals, depending on the specifics.
In other words: the rules do not forbid housing outright — but the county cannot evaluate anything until someone files an actual proposal.
One reason residents assumed housing might be impossible is the plaza’s water features and the nearby Blackhawk Museum.
The county FAQ says the plaza’s water features are artificial and do not carry “special protections” on their own, and that stormwater would be handled through modern standards that are stricter than when the plaza was built.
On the museum: the FAQ says the museum sits on its own parcel under separate ownership, and any redevelopment would need to ensure adequate access, including through existing legal agreements and whatever requirements the county might impose.
Andersen’s office says it will update the county FAQ page as new information becomes available. If the property changes hands through litigation, foreclosure, or a sale, that’s the moment when a new owner could decide whether to keep it retail, refresh it with new tenants, or explore something bigger — including housing.
Again, that process will likely take years. But Andersen’s statement makes clear that the county isn’t putting any roadblocks into the “condo redevelopment” concept.
That means once the dust settles, the idea of a condo conversion isn’t outlandish. But nothing’s on the table at the moment.
We’ll be following this developing story closely. Join our free 925 News newsletter and we’ll update you as we learn more.
