New York-based Seven Equity Group has been selected to buy most of the vacant San Francisco Centre mall on Market Street, the San Francisco Chronicle reported this week, according to SFist and The San Francisco Standard.
Why it matters: The empty, BART-connected mall next to Union Square has been one of the biggest symbols of downtown's struggles. A buyer is a first step toward reviving it, but the deal still has to close.
What's in the deal
The deal covers the former Emporium property in the middle of the block and the connected former Nordstrom portion at Market and Fifth streets, SFist reported. The former Bloomingdale's building facing Mission Street is owned separately by Macy's and is not included.
Sources told The Standard the mall is valued at around $130 million. The buyer would also have to pay hundreds of millions more in redevelopment costs. Seven Equity and CBRE, which ran the auction, declined to comment to The Standard. No plans for the property have been announced.
Who is Seven Equity
The firm is led by former Wells Fargo executive Ray Falack and focuses on assets valued at $50 million to $150 million, according to The Standard. In July it bought 25 Taylor St., connected to the Golden Gate Theatre, and last month it bought two Mission Street buildings near the mall from Westfield for $15.5 million.
How we got here
Westfield and Brookfield walked away from the mall during the pandemic, and it was taken back by its lenders. A first sale to Presidio Bay Ventures and Prado Group fell apart this year after talks with the owners and the San Francisco Unified School District, which owns land under part of the property, hit an impasse. The school district's lease was later extended from 2043 to 2082, The Standard reported.
A team that pitched a sports entertainment complex dropped out this week, SFist reported, citing the Chronicle. Sources told The Standard a data center concept was never seriously considered.
Sources: SFist; The San Francisco Standard (both citing the San Francisco Chronicle).