The fate of the former Westfield shopping center in San Francisco is set to be determined by an auction scheduled for November 14. As San Francisco’s downtown retail landscape faces significant challenges, recent reports indicate that the Metreon shopping center was officially listed for sale last week. Meanwhile, the San Francisco Business Times highlights that the site, now known as the Emporium Centre San Francisco, is also in play.
According to SFGATE, this struggling shopping center had only recently announced agreements with seven new tenants in June, generating a glimmer of hope despite their smaller scale not being major players. However, this development did not quell the ongoing turmoil within the center. The San Francisco Chronicle noted that last month, the Japanese ramen chain Ajisen Ramen permanently closed its location there.
The auction for the Emporium Centre comes on the heels of Brookfield Properties and Westfield’s decision to abandon their debt repayment efforts due to what they termed “challenging operating conditions in downtown San Francisco.” This situation was exacerbated when Nordstrom, the primary tenant occupying nearly half of the shopping center, vacated the premises, followed by closures of other major retailers like Banana Republic, American Eagle, and even Cinemark theaters.
Originally, Brookfield Properties and Westfield owed $558 million in loans supported by the shopping center. However, as of October 2023, that figure ballooned to $625.6 million due to unpaid amounts and penalties. Lenders Deutsche Bank AG and JPMorgan Chase have initiated foreclosure proceedings, and since last fall, the center has been under the management of Trident Pacific, a company specializing in the takeover of troubled commercial properties across the U.S.
The upcoming auction may offer a new opportunity for this 1.4 million square-foot retail and office complex, with proceeds aimed at offsetting the owner’s outstanding debts. However, should no third-party bids emerge, the lenders might exercise their right to redeem the property themselves.
SFGATE reached out to a spokesperson for the Emporium Centre but has yet to receive a response as of the time of this publication.
