A 1.2-million-sq-ft San Francisco mall was foreclosed and a buyer walked away; a new bid would add 6 basketball courts, 8 volleyball courts and a sports high school
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. The proposal follows the collapse of an earlier deal to buy the 1.2-million-square-foot property. 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.
From empty mall to sports destination
The ULD and TMG proposal would divide the massive property into several distinct uses. The lower levels would retain retail and food offerings accessible to the public, while upper floors would focus on sports, entertainment and education.At the centre of the plan is a basketball-focused entertainment venue. The third floor would feature numerous basketball games and hoops, along with a restaurant and sports bar. The concept is being compared to Topgolf, but built around basketball rather than golf. The venue could also host private parties and corporate events.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.
Retail would still have a role
The proposal does not completely abandon the mall’s original purpose. Two floors would remain dedicated to retail, while an underground food court would serve visitors. The lower portions of the property would be open to the public, while some of the sports and educational areas would be restricted to members, programme participants and students.The idea is to create a destination that attracts people for reasons beyond shopping, particularly office workers and residents in the surrounding Mid-Market and Union Square neighbourhoods. That could be important for a property that has struggled as traditional retail has declined. The mall closed in February after years of tenant departures and financial problems, including the exits of major anchors such as Nordstrom and Bloomingdale’s.
A difficult road back
The proposed redevelopment is arriving at a particularly complicated moment for San Francisco Centre. The previous $130-million purchase proposal from Presidio Bay and Prado Group collapsed in July after months of due diligence and negotiations. 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. The company has defaulted on two properties this year, while buildings connected to the firm have faced foreclosure, according to The Standard. 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.The property also has historic elements that must be preserved, including its distinctive dome, adding another layer of complexity to any redevelopment. For now, the sports-centre concept remains just a proposal. The owners have not selected a winning bid, and there is no guarantee that the ambitious basketball-and-volleyball vision will become reality. But after years of vacancies, foreclosures and failed deals, San Francisco Centre may finally have a plan that asks shoppers to do something very different: come downtown to play.
