Brookfield Lands $180M Refi for SF’s Stonestown Galleria

Brookfield Properties has landed a $180 million refinancing package for Stonestown Galleria, a mall in a primarily residential neighborhood of San Francisco that has run counter to the struggles the retail sector has encountered in the city’s center since the pandemic.

Neither the lender nor terms of the deal have been disclosed, the San Francisco Chronicle reported.

The refinancing package keeps Brookfield in line for a redevelopment on portions of the 800,000-square-foot Stonestown Galleria, which has a lineup of more than 100 retail tenants. Brookfield plans to add as many as 3,500 residential units to the site at some point in the future.

The new loan also follows a decision by Brookfield to walk away from Downtown’s 1.5 million-square-foot San Francisco Centre mall, which it owned in partnership with Paris-based Unibail-Rodamco-Westfield.

Brookfield’s loan on Stonestown Galleria came due in October, when the company got a 30-day extension with an option for another as negotiations on a new pact were underway.

In the San Francisco market, Brookfield recently joined with Ballast Investments to buy $800 million in debt tied to a Veritas Investments portfolio of apartment buildings. It’s also moving ahead on its Pier 70 redevelopment project.