Safeway to Shutter H Street Anchor as Hechinger Mall Faces Massive Redevelopment

Safeway will close its 58,000 SF H Street store by May 16, 2026, potentially clearing the way for Ashkenazy’s massive 2.4M SF residential redevelopment plan.

By: AXL Media

Published: Mar 17, 2026, 8:39 AM EDT

Source: Bisnow

Safeway to Shutter H Street Anchor as Hechinger Mall Faces Massive Redevelopment

The long-stalled transformation of Northeast D.C.’s Hechinger Mall has reached a critical turning point with the announcement that its primary grocery anchor, Safeway, will close its doors this spring. The 58,000-square-foot store at 1601 Maryland Ave. NE is scheduled to cease operations by May 16, 2026, marking the end of a 45-year tenure at the site. This departure by parent company Albertsons Cos. effectively clears a significant hurdle for a property that has been the subject of ambitious redevelopment visions for nearly a decade, though the future of the 8.5-acre site remains shrouded in financial and logistical uncertainty.

Category & Subcategory: Real Estate > Buying & Selling

The Anchor Exit and Site Context

Safeway’s decision to exit the H Street corridor stems from the expiration of its lease and a strategic pivot by Albertsons to reinvest capital into other existing regional assets. The store has long served as the retail cornerstone of the 1980s-era strip center located on the eastern edge of the corridor. While its closure leaves a significant void for local shoppers, it provides the property owner, Ashkenazy Acquisition Corp., with a vacant footprint necessary to potentially execute a large-scale master plan. The site currently hosts several other national retailers, including Ross Dress For Less and AutoZone, whose future status remains unconfirmed as the mall’s vacancy increases.

A Decade of Redevelopment Ambitions