Smart & Final to Anchor Shopping Center in South San Jose

Smart & Final’s Scott Drew (Smart & Final, Getty)

Grocer Smart & Final has leased a store formerly occupied by another supermarket in south San Jose.

The Commerce-based supermarket chain has leased 39,000 square feet of space in the Downer Square mall at 430 Blossom Hill Road, the San Jose Mercury News reported. Financial terms of the deal were not disclosed. Smart & Final will occupy a space that once housed Lucky, a Modesto-based subsidiary of Save Mart Supermarkets.

The new Smart & Final Extra! will anchor the nearly 7-acre mall now anchored on the other side by a Walgreens drugstore.

The 73,500 square foot Downer Square includes tenants such as Fresh & Clean Cleaners, Nail Art Salon, Pearl River Chinese Restaurant, Downer Square Shoe & Baggage, Downer Square Bottle Shop and Yum Yum Donuts.

The Smart & Final lease marks the first big deal in decades at the 56-year-old mall.

“It’s rare to have a vacancy at this center,” according to a space availability notice from Coates & Sowards, a Campbell-based property management company that manages Downer Square. “Nearly all of the tenants have been there for 20 years or more, some for over 40 and a few for over 50.”

Smart & Final, founded 151 years ago in Los Angeles, is one of the oldest retailers in the country.

In May 2021, it was acquired for $620 million by Bodega Latina Corporation (later renamed Chedraui USA), a subsidiary of Grupo Comercial Chedraui, a grocery and department store chain based in Xalapa, Mexico. The seller was Apollo Global Management.

Smart & Final operates 254 Smart & Final and Smart & Final Extra! stores in California, Nevada and Arizona, according to its website.

— Dana Barthelemy