Pull to refresh
Logo
What Changed
Following Why Sign Up
Buyer selected for most of San Francisco's shuttered downtown mall

Buyer selected for most of San Francisco's shuttered downtown mall

Money Moves San Francisco, CA local

New York's Seven Equity Group is set to buy the Market Street side of the SF Centre, with closing targeted for early 2027.

October 22nd, 2026: Seven Equity Group named as the buyer

Overview

Updated Oct 25

New York investor Seven Equity Group has been picked to buy the largest piece of the shuttered San Francisco Centre: the roughly 1.15-million-square-foot section at 865 Market St. that faces Market Street. The former Bloomingdale's building at 845 Market St. is owned separately and is not part of the deal.

Closing is expected in the first quarter of 2027, according to a Fitch Ratings report, and depends on financing. B3 Investors is negotiating separately for the Bloomingdale's space at about $40 million, while the sports-complex team of TMG Partners and Urban Land Development dropped out of the bidding.

Why it matters

A signed deal would put downtown's biggest empty building on a redevelopment path, testing whether the area can absorb 1.15 million square feet.

Last Monday's email for San Francisco, CA

Sent Nov 9. It carried:

Get next Monday's: one short email a week. Free. Unsubscribe in one click.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

1.15M sq ft
Space under contract
Market Street-facing portion at 865 Market St., excluding the former Bloomingdale's
$40M
Bloomingdale's parcel price
Reported value of B3 Investors' pending deal for 845 Market St.; not closed
Q1 2027
Expected closing
Timeline given in a Fitch Ratings report, contingent on financing

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

Organizations Involved

Seven Equity Group
Seven Equity Group
Real estate investment firm
Selected as buyer for the roughly 1.15-million-square-foot portion of the San Francisco Centre; closing expected in the first quarter of 2027

New York investment firm that buys and repositions distressed retail properties.
IN
B3 Investors
Commercial real estate firm
Negotiating to buy the former Bloomingdale's portion of the San Francisco Centre; deal had not closed as of October 2026

Regional arm of Austin-based B3 Commercial Management, bidding for the former Bloomingdale's space at 845 Market St.

Timeline

June 2025 October 2026

5 events Latest: October 22nd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Seven Equity Group named as the buyer

    Latest Real Estate

    The Chronicle and The San Francisco Standard reported that New York-based Seven Equity Group, which buys and repositions distressed retail, was picked for the roughly 1.15-million-square-foot portion at 865 Market St. A Fitch Ratings report said closing is expected in the first quarter of 2027. Seven Equity declined to comment.

  2. Buyer selected for SF Centre's Market Street portion

    Real Estate

    The mall's owners choose a buyer for most of the former SF Centre property, excluding the former Bloomingdale's store.

  3. Multiple bids submitted for the dead mall

    Real Estate

    CBRE confirms receiving several bids by the deadline, including a sports-themed proposal from Urban Land Development and TMG Partners.

  4. Previous buyers pull out of purchase agreement

    Real Estate

    Presidio Bay and Prado Group walk away from a reported $130 million deal to buy the mall, prompting CBRE to relist the property.

  5. Westfield defaults; mall goes into foreclosure

    Legal / Financial

    Westfield defaults on the mall's debt; the bondholders behind it took control through foreclosure in November 2025.

Scenarios

1

Sale closes with the selected buyer, a mixed-use redevelopment proceeds

Possible Resolves by Apr 19, 2027

Discussed by: San Francisco Standard, SFist

The chosen buyer completes due diligence and closes the transaction for the Market Street-facing portion. They then file permits for a mixed-use development, possibly incorporating the sports-focused concept pitched by Urban Land Development and TMG Partners, or a more traditional retail/office mix. This would finally give the property a defined path forward.

2

Deal falls apart, mall returns to the market

Possible Resolves by Apr 19, 2027

Discussed by: San Francisco Standard

Similar to the last attempt, the selected buyer walks away during the due diligence period, citing financing issues or economic conditions. The ownership group would be forced to relist the property, setting the redevelopment timeline back further and extending the mall's vacancy.

3

Sale closes, but redevelopment stalls due to legal or financial hurdles

Possible Resolves by Oct 19, 2027

Discussed by: San Francisco Standard

The transaction for the Market Street portion goes through, but progress is slow. A delay occurs due to a challenge over the separate Bloomingdale's parcel, the preservation of the mall's historic dome, or the owners' inability to secure financing for their intended project. The mall stays mostly empty for years.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2023 - 2026

Metreon's transformation (2023-2026)

The Metreon mall, located near SF Centre, was struggling with high vacancy. TMG Partners bought the property in 2025 and began redeveloping it, shifting away from a pure-retail model.

Then

The Metreon is now a destination with a mix of retail, entertainment, and experience-based tenants.

Now

It serves as a template for how a large-format mall in downtown San Francisco can be successfully repurposed.

Why this matters now

TMG Partners, a key bidder for SF Centre, owns the Metreon. This gives them a direct, recent example of how to handle large-format retail properties in the same neighborhood.

2018

The Emeryville Market failure (2018)

A new development in Emeryville, California, failed shortly after opening, showing the risks of new retail and entertainment concepts in the Bay Area's shifting market.

Then

The property experienced significant turnover and financial losses for its investors.

Now

It became a cautionary tale for developers betting on specific retail trends without strong tenant commitments.

Why this matters now

It highlights the financial risk behind the ambitious, sports-focused concept proposed for SF Centre, suggesting that even well-intentioned redevelopment plans can struggle.

Sources

(4)
SFist The San Francisco Standard San Francisco Chronicle SFGuide