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Buyers Walk Away From San Francisco Centre Sale and Mall Will Be Relisted

The withdrawal spotlights unresolved lease and financing hurdles that could delay any redevelopment of the closed downtown complex.

Overview

  • The joint buyers, Presidio Bay Ventures and the Prado Group, confirmed Wednesday that they will not move forward after months of due diligence on the San Francisco Centre.
  • Sources told reporters the lenders and brokerage plan to relist the property following the buyers’ exit, leaving the sale process open to new offers.
  • Reporting showed that negotiators raised issues about a long-term ground lease held by the San Francisco Unified School District but insiders disputed that the lease was the single reason the deal fell apart.
  • Lenders Goldman Sachs and JPMorgan Chase took title at foreclosure last year after the former owners defaulted on a reported $558 million loan and then hired CBRE to market the mall as a redevelopment opportunity.
  • The 1.2–1.5 million-square-foot complex permanently closed in February after years of tenant losses, and the stalled sale deepens uncertainty about downtown San Francisco’s retail recovery and the timeline for reusing the site.