Former Westfield Mall in San Francisco goes foreclosure on November 14_2

The fate of the former Westfield shopping center in San Francisco, now known as the Emporium Centre San Francisco, will be determined at an auction scheduled for November 14. This comes at a tumultuous time for downtown San Francisco’s retail landscape. Recent reports indicate that the Metreon shopping center was formally listed for sale last week.

According to the San Francisco Business Times, the Emporium Centre’s future hangs in the balance as the auction date approaches. Earlier this year, in June, the troubled center announced it had signed leases with seven new tenants. While these tenants may not be major anchors, they brought a glimmer of hope to a shopping center that has faced significant challenges. However, the turmoil did not cease; as reported by the San Francisco Chronicle, the popular Japanese ramen chain Ajisen Ramen permanently closed its doors last month.

The auction for the Emporium Centre comes after its owners, Brookfield Properties and Westfield, decided to abandon debt repayment in 2023, citing “challenging operating conditions in downtown San Francisco.” The situation worsened when Nordstrom, which occupied nearly half the center, vacated, followed by closures of other major stores such as Banana Republic and American Eagle, as well as the Cinemark theater.

Initially, Brookfield Properties and Westfield owed $558 million for loans secured by the shopping center. However, by October 2023, due to unpaid amounts and penalties, the debt had ballooned to $625.6 million. Lenders Deutsche Bank AG and JPMorgan Chase have initiated foreclosure proceedings. Since last fall, Trident Pacific, a company specializing in handling distressed commercial real estate nationwide, has been overseeing the center.

The upcoming auction for the Emporium Centre, which spans 1.4 million square feet of retail and office space, could lead to new ownership. Proceeds from the auction will be used to offset the owner’s outstanding debts. However, without third-party bids, lenders may choose to dismiss the property’s redemption rights.

SFGATE reached out to the Emporium Centre for comment, but had not received a response by the time of publication.