The San Francisco Centre, once a vibrant hub of downtown retail, is once again on the market. A prior agreement to sell the 1.5 million-square-foot property fell through earlier this year, leaving the mall with few remaining tenants and seeking a new buyer. Sellers are expected to offload the property for no more than $130 million, a stark contrast to its valuation of $1.2 billion a decade ago.
The nine-level complex, known for its distinctive spiral escalators and a large glass-and-steel dome, formerly housed anchor stores such as Bloomingdale's and Nordstrom, a cinema, and a day spa. Its decline mirrors broader challenges facing the downtown San Francisco area, which has seen reduced foot traffic and increased issues with open drug use and crime following the COVID-19 pandemic.
Both Nordstrom and Bloomingdales closed their San Francisco Centre locations in 2023, citing difficulties in recovering foot traffic. Following these closures, the mall's owner, Unibail-Rodamco-Westfield, relinquished the property to its lenders after ceasing loan payments. A proposed $130 million sale to developers Presidio Bay and Prado Group dissolved in July when the buyers determined that redeveloping the mall, which occupies land owned by the San Francisco Unified School District, would be excessively costly.
The property incurs significant annual maintenance expenses and is projected to exhaust its available funds within months. Amidst these challenges, various proposals have emerged for repurposing the substantial vacant space. One potential bidder, Urban Land Development, is reportedly considering a large sports complex featuring facilities for volleyball, soccer, and basketball. Additionally, architectural firm Gensler has put forth a concept for a major soccer stadium.
Design students from Stanford and UC Berkeley have also developed a concept for a mixed-use development. Their reimagined mall includes residential units, entertainment attractions like a trampoline park and go-kart track, green spaces, a food court, a concert venue, and immersive art installations.