The proposal follows the collapse of an earlier deal to buy the 1.2-million-square-foot property. San Francisco’s struggling downtown mall could get a second life as a major sports destination. The San Francisco Standard and San Francisco Chronicle report that Urban Land Development and TMG Partners have submitted a bid to transform the shuttered San Francisco Centre into a multilevel complex featuring six basketball courts, eight volleyball courts, retail, dining and a sports-focused high school. After its former owners defaulted on their debt, the mall was foreclosed on by lenders, while prospective buyers Presidio Bay Ventures and Prado Group later withdrew from their purchase agreement.
CBRE subsequently returned the property to the market and received multiple bids before the latest bidding window closed, with the bondholder owners expected to choose a buyer in the coming weeks.
The previous $130-million purchase proposal from Presidio Bay and Prado Group collapsed in July after months of due diligence and negotiations.
The company has defaulted on two properties this year, while buildings connected to the firm have faced foreclosure, according to The Standard. One floor above, the developers envision six full-size hardwood basketball courts for private training camps. The programme would be connected to an organisation founded by NBA coach and Bay Area native Phil Handy, who is on the Philadelphia 76ers’ coaching staff. The next floor would contain eight volleyball courts, which could be rented for games, tournaments and other events. At the top of the building, the proposal calls for a sports-focused high school, potentially bringing students into the centre on a daily basis. The proposed redevelopment is arriving at a particularly complicated moment for San Francisco Centre. Their withdrawal sent the property back to the market and left lenders searching for another path forward. The new bid also comes as ULD faces its own financial challenges. TMG Partners, meanwhile, has a substantial Bay Area footprint and owns the nearby Metreon. The firm is expected to provide much of the capital if its partnership with ULD is selected.