The vacant shopping center at 945 Market St. that has not once seen a customer in almost five years has a new owner.
Ingka Centres, the mall owner division of IKEA’s parent company, has purchased the mid-Market building, as first reported by the San Francisco Chronicle.
Since its opening in the fall of 2016, the 250,000-square-foot retail complex has faced seemingly never-ending obstacles, including a declining retail sector and its sometimes unsavory location near Sixth St.
It’s only ever earned revenue from its 167-space parking garage.
After two years of floundering attempts at filling the retail vacancies, owner Cypress Equities was permitted by the city to convert 47,522 square feet of retail space into offices in 2018. That didn’t work either, and they later sold the development to Alexandria Real Estate Equities and TMG Partners for $179 million.
This purchase is surprising amid a pandemic that’s been highlighted by a struggling retail and a tech sector that seems to have given in to permanent remote work possibilities.
Ingka Centres operates 45 malls in Europe, Russia and China, each with IKEA as a main attraction. The malls also offer entertainment and restaurant services to shoppers, and the company told Reuters earlier this year they plan to spend $7.9 billion in expansion in the coming years.
SFGATE reached out to Ingka Centres for comment and did not hear back as of publication. We will update the story if we do.
Tessa McLean is a digital editor with SFGATE. Email her at [email protected] or follow her on Twitter @mcleantessa.