San Francisco Centre mall returns to market at significantly reduced valuation

The San Francisco Centre, a 1.5-million-square-foot shopping mall, is back on the market with bids due this week. The property is expected to sell for no more than $130 million, a significant decline from its $1.2 billion valuation a decade ago.

The mall's decline followed the pandemic, as crime and homelessness reduced foot traffic. Major retailers including Nordstrom and Bloomingdale’s closed their locations, leaving the nine-level complex 93% vacant. The previous owner, Unibail-Rodamco-Westfield, turned the property over to lenders in 2023 after ceasing loan payments.

A previous $130 million sale to local firms collapsed in July due to the complexities of redeveloping the site. Complications include a web of ownership interests, such as land beneath the mall owned by the San Francisco Unified School District and space owned by Macy’s Inc. To assist potential buyers, the school district has agreed to extend the property’s ground lease through 2082. One potential bidder is exploring the conversion of the former Nordstrom space into a multilevel sports complex.