B3 Investors Has Nared Purchase of Mall Property
The firm is negotiating to acquire a 350,000 square-foot space at the former San Francisco Centre.
Updated on Sept. 18, 2026 in Commercial
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B3 Investors is in talks to purchase the former Bloomingdale's location at 845 Market Street. This deal follows the closure of the 1.5-million-square-foot San Francisco Centre earlier in 2026 after lenders seized the property.
Why it matters
The deal arrives as multiple parties submit bids for the shuttered mall property following the collapse of a prior acquisition agreement. That earlier sale failed due to stalled ground lease negotiations with the San Francisco Unified School District, which owns a 76,000 square-foot parcel beneath the site.
B3 Investors, an Austin-based firm, aims to acquire a 350,000 square-foot space formerly occupied by Bloomingdale's. Macy's maintains separate ownership of this specific segment of the 1.5-million-square-foot mall.
The players
B3 Investors
This Austin-based company is a subsidiary of B3 Commercial Management and previously acquired the Bayfair Center in San Leandro in 2022.
San Francisco Unified School District
This educational authority owns a 76,000 square-foot parcel of land situated directly beneath the San Francisco Centre mall property.
TMG Partners
This firm is a real estate developer that has proposed transforming the former mall site into a sports and entertainment complex.
Prado Group
This real estate investment firm previously entered into an agreement to purchase the mall property earlier in 2026.
The details
The prospective buyer, a subsidiary of B3 Commercial Management, is targeting the site at 845 Market Street that has sat vacant since March 2025. Other developers, including TMG Partners and Urban Land Development, have previously floated proposals for the site, such as a sports and entertainment complex.
Timeline
Bloomingdale's vacated the San Francisco Centre in March 2025.
The mall closed in early 2026 after lenders seized the property.
Prado Group and Presidio Bay Ventures agreed to purchase the site in the spring of 2026.
Culture Shift
The potential acquisition highlights the ongoing struggle to repurpose massive urban retail centers in a post-pandemic landscape. This development follows the collapse of the 2026 Prado Group and Presidio Bay Ventures acquisition, marking a pivot toward segmented ownership of the site.
Residents and local businesses may see progress toward the reactivation of the large vacant property on Market Street. The final deal structure will determine if the site remains retail-focused or transitions into the sports and entertainment complex proposed by other developers.
The takeaway
The move by B3 Investors reflects a trend of firms seeking to acquire subdivided portions of troubled retail assets rather than whole properties. Potential buyers must navigate complex land ownership hurdles, such as the school district's underlying parcel, to successfully redevelop these sites.
Further reading
For more insight into the city's shifting retail environment, visit San Francisco Commercial.
Source note: This article includes information reported by The Real Deal New York.
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