Could This San Francisco Site Become Ikea's First U.S. Mall?

Ikea may soon inhabit a San Francisco mall property that has been vacant since its high-profile opening in 2016.

Ingka Centres, the retailer's mall ownership and development sister company, has purchased the 250K SF 6X6 property in San Francisco from developers Alexandria Real Estate Equities and TMG Partners, an Ikea Retail U.S. spokesperson confirmed for Bisnow.

Last year the two big Bay Area developers jointly acquired the property for $179M from the original developer, Cypress Equities. But the six-level property stayed vacant as mall performance across the country worsened with e-commerce's growth.

“We are thrilled to be able to execute a signature retail transaction in this current environment," TMG Partners President Matt Field said in a statement.

All three companies in the deal declined to give pricing details.

For Ikea, an integral role at 945 Market St. could mean the country's first Ikea mall. As of May, Ingka Centres was in negotiations for sites in New York, Los Angeles, San Francisco and Chicago, Reuters reported at the time.

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