New Buyer Selected for San Francisco Centre as Fitch Warns of Severe Loan Losses

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A new buyer has been selected for the shuttered San Francisco Centre mall, according to an October 22 Fitch Ratings report, as the credit-rating agency warned of substantial expected losses on commercial mortgage-backed securities tied to the distressed property.

The San Francisco Chronicle identified New York-based Seven Equity Group as the prospective buyer, citing sources familiar with the process. Fitch did not name the purchaser.

Fitch downgrades securities

Fitch downgraded four classes of JPMCC 2016-JP3 securities. The agency raised its expected losses under its rating scenario for the overall mortgage pool to 39.5%, from 25.9% previously.

The mall remains the pool’s largest contributor to expected losses. Fitch estimates a 90% loss on the property’s loan using a stressed recovery value of $35 per square foot. These are rating assumptions, not realized losses from a completed sale.

An earlier buyer withdrew in July. The new prospective transaction is expected to close in the first quarter of 2027, but financing and other conditions remain unresolved.

WRE News previously covered the effort to find another buyer for the property.