The group in possession of San Francisco’s largest mall is looking to kick out the few remaining tenants.
Workers at multiple stores at the San Francisco Centre told The Standard on Friday that they received a notice from the mall’s management asking them to shut down.
One store employee said that they were told that Dec. 31 was the last possible day for operation. Another said they would be allowed to operate until Jan. 26. Others said they hadn’t received a notice but planned to close before the end of year anyway.
“There’s been so much uncertainty and rumors,” said one employee, who asked to remain anonymous since they are not authorized to speak to the media. They heard that their store had been told by management to vacate the premises, but didn’t know the exact date.
The 5.9-acre property, comprising two structures, was foreclosed on by lenders last week, which put the mall in control of investors. Those investors were owed nearly $600 million from previous owners Unibail-Rodamco-Westfield and Brookfield Properties, which defaulted on the debt in 2023.
After seizing the mall from the delinquent borrowers, the investment group enlisted real estate firm CBRE to market the property for sale. A brochure (opens in new tab) for the listing described it as a “unique chance to transform the existing 1.2 million-square-foot structure or pursue a massive new mixed-use development within the attractive zoning parameters.”
Experts say that emptying out a retail property of this size with few profitable tenants could lower the daily operating cost of maintaining the site. It could also offer prospective buyers a clean slate to take the mall in any direction without having to negotiate with operators.
CBRE declined to comment. Representatives of the mall’s current management did not respond to a request for comment.
Less than a decade ago, the San Francisco Centre was valued at more than $1.2 billion. Lenders took control of the property by submitting a credit bid far below that value, at $133 million.
It is not immediately clear if any tenants have lease protections that would shield them from any change in ownership of the mall.
Before last week’s foreclosure, only tenants who had been delinquent on rent were given notices to leave.
The San Francisco Business Times was the first to report this latest (opens in new tab) wave of notices.
Ezra Wallach contributed reporting.