If the San Francisco Centre had been on life support since Nordstrom left in 2023, then the announcement that Bloomingdale’s, the sole remaining anchor, was exiting the mall with 20 years still on its lease marked the pulling of the plug. 

Normally, a clean slate would represent an opportunity to reimagine the property. But in this case, a complicated web of lenders who are anxious to get their money back are keeping the mall frozen in place. 

Banks often bundle mortgages into an asset known as a commercial mortgage-backed security (CMBS) that can be bought and sold on the market. This is a key factor holding up the sale of the San Francisco Centre. 

At 800,000 square feet, it’s the city’s largest mall and was once a piece of prime real estate. But because the last refinancing, in 2016, involved a chunk of CMBS debt, multiple groups — not just the banks that initially loaned cash — have a say on the future of the property, and they’re pulling in different directions.