Terms of the new loan for the property have not yet been made public, and Brookfield confirmed to the Chronicle that it had refinanced the loan but declined to comment.
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Like many other commercial properties in San Francisco, the two-story, 800,000-square-foot mall on the city’s west side was feeling the pressure of debt maturities in a depressed post-pandemic market. And even though Stonestown’s recovery has been more steady than that of downtown’s Westfield Center, the city’s largest shopping mall, concerns about Brookfield’s ability to hang on to Stonestown have been raised since October, when a loan on the property was announced. Triggered after the deadline has arrived.
Westfield’s ownership, which also included Brookfield along with Paris-based Unibail-Rodamco Westfield, suspended payments on a $558 million mortgage in June and sold 1.5 million square feet. Concerns were further heightened by the fact that it had divested of its retail and office properties.Address 865 Market Street
Westfield’s occupancy rate was 46.1% as of March, down from 73.9% at the end of 2021. The mall lost its anchor tenant this summer after Nordstrom refused to renew the property’s lease, leaving it about 60% vacant.
In October, the San Francisco Superior Court appointed Trident Pacific’s Greg Williams as a trustee of Westfield to “take ownership, custody, and control.” Real estate brokerage JLL will be hired to manage and lease the struggling mall, according to court filings.
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Investor confidence in San Francisco’s commercial real estate market has plummeted amid rising retail and office vacancies, while interest rates have soared over the past year, making refinancing extremely difficult. ing.
However, Brookfield has long said it is confident in its ability to secure new financing for Stonestown. Stonestown will be redeveloped into a largely residential area with up to 3,500 new homes and additional uses such as parks, open space, retail and community. Amenity space, offices, multi-story parking lot. The mall currently houses over 125 of his retail stores.
When the Stonestown loan matured in October, Brookfield was granted a 30-day extension by its lender to allow for refinancing negotiations, and last month had the option to extend the deadline by another 30 days.
Contact Laura Waxmann: laura.waxmann@sfchronicle.com