David Lombardi

In a dramatic and shocking reversal, Kyle Juszczyk is back with the 49ers —&nbsp;and the team is suddenly contractually committed to the beloved fullback for two new years.

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In a dramatic and shocking reversal, Kyle Juszczyk is back with the 49ers —&nbsp;and the team is suddenly contractually committed to the beloved fullback for two new years.

The 49ers had released Juszczyk, 33, on Monday —&nbsp;<a href="https://sfstandard.com/2025/03/10/dre-greenlaw-49ers-joey-bosa-free-agency-restraint/">a ruthless day of attrition</a> that also saw stars Dre Greenlaw and Talanoa Hufanga, among others, leave to other teams. Tight end Luke Farrell, a new 49ers&#8217; signee to begin free agency, was meant to reprise as much of Juszczyk&#8217;s adaptable role as possible.

Kyle Juszczyk, Dre Greenlaw out: Inside the 49ers&#8217; ruthless start to free agency

The 49ers had released Juszczyk, 33, on Monday —&nbsp;<a href="https://sfstandard.com/2025/03/10/dre-greenlaw-49ers-joey-bosa-free-agency-restraint/">a ruthless day of attrition</a> that also saw stars Dre Greenlaw and Talanoa Hufanga, among others, leave to other teams. Tight end Luke Farrell, a new 49ers' signee to begin free agency, was meant to reprise as much of Juszczyk's adaptable role as possible.

The 49ers had released Juszczyk, 33, on Monday —&nbsp;<a href="https://sfstandard.com/2025/03/10/dre-greenlaw-49ers-joey-bosa-free-agency-restraint/">a ruthless day of attrition</a> that also saw stars Dre Greenlaw and Talanoa Hufanga, among others, leave to other teams. Tight end Luke Farrell, a new 49ers&#8217; signee to begin free agency, was meant to reprise as much of Juszczyk&#8217;s adaptable role as possible.

But as Friday night turned into Saturday morning, the 49ers suddenly had their cake and ate it, too: They now have both Farrell&nbsp;and Juszczyk.

But as Friday night turned into Saturday morning, the 49ers suddenly had their cake and ate it, too: They now have both Farrell&nbsp;and Juszczyk.

ESPN&#8217;s Adam Schefter first reported that Juszczyk re-signed on a two-year deal with up to $8 million. With $7 million of this new contract <a href="https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/with-steelers-hot-on-kyle-juszczyks-trail-the-49ers-came-through">fully guaranteed</a>, the 49ers have broadcast their intentions of keeping Juszczyk aboard for the next two seasons — through 2026. Juszczyk reportedly accepted less money from the 49ers than the Pittsburgh Steelers, who offered him a contract after a midweek visit.

ESPN's Adam Schefter first reported that Juszczyk re-signed on a two-year deal with up to $8 million. With $7 million of this new contract <a href="https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/with-steelers-hot-on-kyle-juszczyks-trail-the-49ers-came-through">fully guaranteed</a>, the 49ers have broadcast their intentions of keeping Juszczyk aboard for the next two seasons — through 2026. Juszczyk reportedly accepted less money from the 49ers than the Pittsburgh Steelers, who offered him a contract after a midweek visit.

ESPN&#8217;s Adam Schefter first reported that Juszczyk re-signed on a two-year deal with up to $8 million. With $7 million of this new contract <a href="https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/with-steelers-hot-on-kyle-juszczyks-trail-the-49ers-came-through">fully guaranteed</a>, the 49ers have broadcast their intentions of keeping Juszczyk aboard for the next two seasons — through 2026. Juszczyk reportedly accepted less money from the 49ers than the Pittsburgh Steelers, who offered him a contract after a midweek visit.

From a salary-cap perspective, the 49ers will benefit from the entire series of Juszczyk maneuvers. The fullback had been scheduled to make $4.6 million in 2025 before the 49ers released him. He&#8217;s now locked in at $4 million per year — essentially equating to a $600,000 discount for 2025 — and with an extra season of team control (2026) that the 49ers previously did not have.

From a salary-cap perspective, the 49ers will benefit from the entire series of Juszczyk maneuvers. The fullback had been scheduled to make $4.6 million in 2025 before the 49ers released him. He's now locked in at $4 million per year — essentially equating to a $600,000 discount for 2025 — and with an extra season of team control (2026) that the 49ers previously did not have.

From a salary-cap perspective, the 49ers will benefit from the entire series of Juszczyk maneuvers. The fullback had been scheduled to make $4.6 million in 2025 before the 49ers released him. He&#8217;s now locked in at $4 million per year — essentially equating to a $600,000 discount for 2025 — and with an extra season of team control (2026) that the 49ers previously did not have.

Juszczyk benefits from $7 million of fully-guaranteed money (for all intents and purposes, a two-year commitment); he previously didn&#8217;t have any. And the 49ers can now rest easy knowing that Juszczyk, a foundational locker room pillar, can be retained at an efficient price in 2026 without any more haggling. The team had asked Juszczyk to take a pay cut last offseason before this week&#8217;s contractual rollercoaster ride.

Juszczyk benefits from $7 million of fully-guaranteed money (for all intents and purposes, a two-year commitment); he previously didn't have any. And the 49ers can now rest easy knowing that Juszczyk, a foundational locker room pillar, can be retained at an efficient price in 2026 without any more haggling. The team had asked Juszczyk to take a pay cut last offseason before this week's contractual rollercoaster ride.

Juszczyk benefits from $7 million of fully-guaranteed money (for all intents and purposes, a two-year commitment); he previously didn&#8217;t have any. And the 49ers can now rest easy knowing that Juszczyk, a foundational locker room pillar, can be retained at an efficient price in 2026 without any more haggling. The team had asked Juszczyk to take a pay cut last offseason before this week&#8217;s contractual rollercoaster ride.

The release did not change the 49ers&#8217; long-term salary-cap situation. The $3.6 million in dead money associated with cutting Juszczyk on Monday would&#8217;ve been split between 2025 and 2026 had he not been cut. The release simply made all of the $3.6 million hit in 2025. The re-signing then added a new, separate deal to the 49ers&#8217; books. But since cap space all comes from the same large pool (unused room carries over year to year) and the 49ers have approximately $50 million of it this year, the reallocation of dead money that would&#8217;ve hit in 2026 anyway is irrelevant.

The release did not change the 49ers' long-term salary-cap situation. The $3.6 million in dead money associated with cutting Juszczyk on Monday would've been split between 2025 and 2026 had he not been cut. The release simply made all of the $3.6 million hit in 2025. The re-signing then added a new, separate deal to the 49ers' books. But since cap space all comes from the same large pool (unused room carries over year to year) and the 49ers have approximately $50 million of it this year, the reallocation of dead money that would've hit in 2026 anyway is irrelevant.

The release did not change the 49ers&#8217; long-term salary-cap situation. The $3.6 million in dead money associated with cutting Juszczyk on Monday would&#8217;ve been split between 2025 and 2026 had he not been cut. The release simply made all of the $3.6 million hit in 2025. The re-signing then added a new, separate deal to the 49ers&#8217; books. But since cap space all comes from the same large pool (unused room carries over year to year) and the 49ers have approximately $50 million of it this year, the reallocation of dead money that would&#8217;ve hit in 2026 anyway is irrelevant.

At this point, it&#8217;s unclear what transpired behind the scenes to move the 49ers off their original cost-cutting position, but coach Kyle Shanahan is presumably thrilled about a re-signing that can maximize the adaptability of the offense around quarterback Brock Purdy. Whereas Farrell adds 12 (one back, two tight ends) personnel potential, Juszczyk&#8217;s return will allow the 49ers to continue attacking with 21 (two backs, 1 tight end) whenever Shanahan sees fit. And yes, 22 personnel —&nbsp;featuring two backs and two tight ends —&nbsp;is now a more pronounced possibility than ever for Shanahan&#8217;s 49ers. Adaptability is king.

At this point, it's unclear what transpired behind the scenes to move the 49ers off their original cost-cutting position, but coach Kyle Shanahan is presumably thrilled about a re-signing that can maximize the adaptability of the offense around quarterback Brock Purdy. Whereas Farrell adds 12 (one back, two tight ends) personnel potential, Juszczyk's return will allow the 49ers to continue attacking with 21 (two backs, 1 tight end) whenever Shanahan sees fit. And yes, 22 personnel —&nbsp;featuring two backs and two tight ends —&nbsp;is now a more pronounced possibility than ever for Shanahan's 49ers. Adaptability is king.

At this point, it&#8217;s unclear what transpired behind the scenes to move the 49ers off their original cost-cutting position, but coach Kyle Shanahan is presumably thrilled about a re-signing that can maximize the adaptability of the offense around quarterback Brock Purdy. Whereas Farrell adds 12 (one back, two tight ends) personnel potential, Juszczyk&#8217;s return will allow the 49ers to continue attacking with 21 (two backs, 1 tight end) whenever Shanahan sees fit. And yes, 22 personnel —&nbsp;featuring two backs and two tight ends —&nbsp;is now a more pronounced possibility than ever for Shanahan&#8217;s 49ers. Adaptability is king.

The first hint of this extraordinary turnaround came on Friday night, when 49ers tight end George Kittle — who&#8217;d shown his disappointment following Juszczyk&#8217;s release on Monday — took back to X and posted this:

The first hint of this extraordinary turnaround came on Friday night, when 49ers tight end George Kittle — who'd shown his disappointment following Juszczyk's release on Monday — took back to X and posted this:

The first hint of this extraordinary turnaround came on Friday night, when 49ers tight end George Kittle — who&#8217;d shown his disappointment following Juszczyk&#8217;s release on Monday — took back to X and posted this:

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<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
https://twitter.com/gkittle46/status/1900766615345500561
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">🧃❤️ <a href="https://t.co/44MzvQuY22">pic.twitter.com/44MzvQuY22</a>&mdash; George Kittle (@gkittle46) <a href="https://twitter.com/gkittle46/status/1900766615345500561?ref_src=twsrc%5Etfw">March 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Juszczyk, who signed with the team in March 2017, is now again the 49ers&#8217; longest-tenured player. He had been temporarily replaced by Kittle, whom the 49ers drafted in April 2017.

Juszczyk, who signed with the team in March 2017, is now again the 49ers' longest-tenured player. He had been temporarily replaced by Kittle, whom the 49ers drafted in April 2017.

Juszczyk, who signed with the team in March 2017, is now again the 49ers&#8217; longest-tenured player. He had been temporarily replaced by Kittle, whom the 49ers drafted in April 2017.

Juszczyk&#8217;s wife, Kristin, went to Instagram on early Saturday morning to post an emotional video marking the return.

Juszczyk's wife, Kristin, went to Instagram on early Saturday morning to post an emotional video marking the return.

Juszczyk&#8217;s wife, Kristin, went to Instagram on early Saturday morning to post an emotional video marking the return.

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https://twitter.com/Coach_Yac/status/1900895161254621335
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Kyle Juszczyk’s wife, Kristin, just posted this on her IG 🔥 <a href="https://t.co/nBcPDP1E3m">pic.twitter.com/nBcPDP1E3m</a>&mdash; Coach Yac 🗣 (@Coach_Yac) <a href="https://twitter.com/Coach_Yac/status/1900895161254621335?ref_src=twsrc%5Etfw">March 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&#8220;This past week has really made Kyle and I reflect on our past eight years in the Bay,&#8221; Kristin wrote. &#8220;We grew up here. We turned friends into family here. We won championships here and we lost championships here. We feel so incredibly blessed to have called the Bay home for the past eight years. It&#8217;s truly been the best years of our lives. Kyle&#8217;s curtain isn&#8217;t closed just yet and we couldn&#8217;t be more happy and emotional to stay home!!!&#8221;

"This past week has really made Kyle and I reflect on our past eight years in the Bay," Kristin wrote. "We grew up here. We turned friends into family here. We won championships here and we lost championships here. We feel so incredibly blessed to have called the Bay home for the past eight years. It's truly been the best years of our lives. Kyle's curtain isn't closed just yet and we couldn't be more happy and emotional to stay home!!!"

&#8220;This past week has really made Kyle and I reflect on our past eight years in the Bay,&#8221; Kristin wrote. &#8220;We grew up here. We turned friends into family here. We won championships here and we lost championships here. We feel so incredibly blessed to have called the Bay home for the past eight years. It&#8217;s truly been the best years of our lives. Kyle&#8217;s curtain isn&#8217;t closed just yet and we couldn&#8217;t be more happy and emotional to stay home!!!&#8221;

Major plot twist: Kyle Juszczyk is back with the 49ers — with $7 million guaranteed

Kevin Truong

Kevin V. Nguyen

Macy’s decision to <a href="https://sfstandard.com/2024/02/27/san-francisco-macys-closing/">shutter its iconic San Francisco location</a> in Union Square represents the shocking end of an era for a once-mighty retailer laid low.

In another severe blow to San Francisco, Macy’s to close historic Union Square store

Macy’s decision to <a href="https://sfstandard.com/2024/02/27/san-francisco-macys-closing/">shutter its iconic San Francisco location</a> in Union Square represents the shocking end of an era for a once-mighty retailer laid low.

“The latest Macy’s news is a classic example of a legacy brand on a slow but steady decline towards irrelevance,” said Michael Berne, president of retail consultancy MJB Consulting, adding he found the Union Square decision unwise given the importance of large brands maintaining flagship stores in major markets.&nbsp;

“The latest Macy’s news is a classic example of a legacy brand on a slow but steady decline towards irrelevance,” said Michael Berne, president of retail consultancy MJB Consulting, adding he found the Union Square decision unwise given the importance of large brands maintaining flagship stores in major markets.&nbsp;

Berne said while there could be many possible factors, such as consumer tastes and habits evolving, it is hard not to consider Macy&#8217;s efforts to fend <a href="https://apnews.com/article/macys-arkhouse-brigade-takeover-c9167d79c3fe39a192a0ac4c80341408" target="_blank" rel="noreferrer noopener">off a hostile takeover</a> when thinking about why the company would shutter such a historic location at this time.&nbsp;

Berne said while there could be many possible factors, such as consumer tastes and habits evolving, it is hard not to consider Macy's efforts to fend <a href="https://apnews.com/article/macys-arkhouse-brigade-takeover-c9167d79c3fe39a192a0ac4c80341408" target="_blank" rel="noreferrer noopener">off a hostile takeover</a> when thinking about why the company would shutter such a historic location at this time.&nbsp;

Berne said while there could be many possible factors, such as consumer tastes and habits evolving, it is hard not to consider Macy&#8217;s efforts to fend <a href="https://apnews.com/article/macys-arkhouse-brigade-takeover-c9167d79c3fe39a192a0ac4c80341408" target="_blank" rel="noreferrer noopener">off a hostile takeover</a> when thinking about why the company would shutter such a historic location at this time.&nbsp;

The city will get at least a brief reprieve from the gaping 700,000-square-foot vacancy that Macy’s will leave behind. The retailer is still analyzing its ability to sell the property and the earliest the store would close is 2025.&nbsp;

The city will get at least a brief reprieve from the gaping 700,000-square-foot vacancy that Macy’s will leave behind. The retailer is still analyzing its ability to sell the property and the earliest the store would close is 2025.&nbsp;

Macy’s Union Square flagship store—which first opened in 1947—is set to close, according to Supervisor Aaron Peskin, who said the company directly informed him Tuesday morning of its plans. The location will remain open until Macy’s finds a buyer for the property it owns, and the impending San Francisco closure is one of 150 locations—about 30% of its total locations—that will meet the same fate over the next three years, according to an announcement from the retail giant.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined03_20230227-macysunionsquarefuture.jpg?w=2500" alt="The image shows Macy's store windows reflecting buildings, with people visible inside." class="wp-image-253397"/><figcaption class="wp-element-caption">Macy’s Union Square flagship store will remain open until the company finds a buyer for the property it owns. </figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined03_20230227-macysunionsquarefuture.jpg?w=2500" alt="The image shows Macy's store windows reflecting buildings, with people visible inside." class="wp-image-253397"/><figcaption class="wp-element-caption">Macy’s Union Square flagship store will remain open until the company finds a buyer for the property it owns. </figcaption></figure>

“Macy’s has always meant a lot to the people of this city. It’s where families came to shop for the holidays,” Mayor London Breed said in a statement. “It’s where many people from my community got their first jobs, or even held jobs for decades. It’s hard to think of Macy’s not being part of our city anymore.”

“Macy’s has always meant a lot to the people of this city. It’s where families came to shop for the holidays,” Mayor London Breed said in a statement. “It’s where many people from my community got their first jobs, or even held jobs for decades. It’s hard to think of Macy’s not being part of our city anymore.”

<h2 class="wp-block-heading" id="h-union-square-icon">Union Square icon</h2>

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<h2 class="wp-block-heading" id="h-union-square-icon">Union Square icon</h2>

For decades, the store was a steadfast presence downtown, acting as the backdrop to innumerable tourist photos and functioning as a holiday destination for generations of Bay Area residents. Now, just as the former Westfield mall a few blocks away <a href="https://sfstandard.com/2024/02/02/westfield-downtown-san-francisco-centre-mall-empty-dead/">sits as a mere shadow</a> of its former self, the impending departure of a Union Square stalwart is a blow for a city in sore need of positive news.&nbsp;

‘A ghost town’: How downtown San Francisco mall became a shadow of its former self

For decades, the store was a steadfast presence downtown, acting as the backdrop to innumerable tourist photos and functioning as a holiday destination for generations of Bay Area residents. Now, just as the former Westfield mall a few blocks away <a href="https://sfstandard.com/2024/02/02/westfield-downtown-san-francisco-centre-mall-empty-dead/">sits as a mere shadow</a> of its former self, the impending departure of a Union Square stalwart is a blow for a city in sore need of positive news.&nbsp;

Macy’s came to San Francisco in 1945 through the acquisition of local department store company O&#8217;Connor, Moffatt Co., taking over and rebranding the building at 101 Stockton St. as part of a national growth plan.&nbsp;

Macy’s came to San Francisco in 1945 through the acquisition of local department store company O'Connor, Moffatt Co., taking over and rebranding the building at 101 Stockton St. as part of a national growth plan.&nbsp;

Macy’s came to San Francisco in 1945 through the acquisition of local department store company O&#8217;Connor, Moffatt Co., taking over and rebranding the building at 101 Stockton St. as part of a national growth plan.&nbsp;

The new front of Macy's looks out onto Union Square. Photo By Lea Suzuki (Photo By LEA SUZUKI/The San Francisco Chronicle via Getty Images)

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined01_20230227-macysunionsquarefuture.jpg?w=1508" alt="A sunny urban park with people, in front of a large Macy's store and city buildings." class="wp-image-253395"/><figcaption class="wp-element-caption">At its peak in the 1990s, Macy’s dominated San Francisco’s premier shopping area, spanning some 1.1 million square feet of retail space.</figcaption></figure>

The company went on a gradual expansion and build-out in subsequent years, incorporating 170 O’Farrell St. to its storefront in a 1948 expansion. In the years following, a bankruptcy filing, an attempted takeover and various mergers made the San Francisco flagship the centerpiece of the company’s Macy&#8217;s West division.&nbsp;

The company went on a gradual expansion and build-out in subsequent years, incorporating 170 O’Farrell St. to its storefront in a 1948 expansion. In the years following, a bankruptcy filing, an attempted takeover and various mergers made the San Francisco flagship the centerpiece of the company’s Macy's West division.&nbsp;

The company went on a gradual expansion and build-out in subsequent years, incorporating 170 O’Farrell St. to its storefront in a 1948 expansion. In the years following, a bankruptcy filing, an attempted takeover and various mergers made the San Francisco flagship the centerpiece of the company’s Macy&#8217;s West division.&nbsp;

In 1984, Macy’s opened a separate men’s store in San Francisco at 120 Stockton St.—at the time one of the largest men’s department stores in the world—across from its central Union Square location.&nbsp;

In 1984, Macy’s opened a separate men’s store in San Francisco at 120 Stockton St.—at the time one of the largest men’s department stores in the world—across from its central Union Square location.&nbsp;

Macy’s Union Square workers say rampant shoplifting to blame for closure

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At its peak in the mid-1990s, Macy’s dominated San Francisco’s premier shopping area, spanning some 1.1 million square feet of retail space across its flagship at 170 O&#8217;Farrell St., the I. Magnin Building at 50 Grant Ave. and the Macy’s Men’s store.

At its peak in the mid-1990s, Macy’s dominated San Francisco’s premier shopping area, spanning some 1.1 million square feet of retail space across its flagship at 170 O'Farrell St., the I. Magnin Building at 50 Grant Ave. and the Macy’s Men’s store.

At its peak in the mid-1990s, Macy’s dominated San Francisco’s premier shopping area, spanning some 1.1 million square feet of retail space across its flagship at 170 O&#8217;Farrell St., the I. Magnin Building at 50 Grant Ave. and the Macy’s Men’s store.

Then came the rise of e-commerce and the shift away from big-box retailers. Store closure announcements started becoming a regular pattern for Macy’s, including 40 stores in 2015, 100 stores in 2017 and 150 stores this week, including San Francisco’s Union Square location.

Then came the rise of e-commerce and the shift away from big-box retailers. Store closure announcements started becoming a regular pattern for Macy’s, including 40 stores in 2015, 100 stores in 2017 and 150 stores this week, including San Francisco’s Union Square location.

<h2 class="wp-block-heading" id="h-san-francisco-sell-off">San Francisco sell-off</h2>

Amid slowing sales and falling stock prices, Macy’s cannibalized a slice of its San Francisco real estate holdings for cash after failing to convert portions of its stores into different uses.&nbsp;

Amid slowing sales and falling stock prices, Macy’s cannibalized a slice of its San Francisco real estate holdings for cash after failing to convert portions of its stores into different uses.&nbsp;

In 2016, the company sold its 250,000-square-foot men&#8217;s store at 120 Stockton St. to Morgan Stanley and Blatteis &amp; Schnur for around $275 million.&nbsp;

In 2016, the company sold its 250,000-square-foot men's store at 120 Stockton St. to Morgan Stanley and Blatteis &amp; Schnur for around $275 million.&nbsp;

In 2016, the company sold its 250,000-square-foot men&#8217;s store at 120 Stockton St. to Morgan Stanley and Blatteis &amp; Schnur for around $275 million.&nbsp;

MACYS RETURN_057_LH.JPG  Jenny Leung (right, on couch) shopping for shoes at downtown Macy's day after Christmas.  Jennifer Huang (middle, on couch) and Alex Chiang (left, on couch).  Photographed by Liz Hafalia on 12/26/05 in San Francisco, California.

<figure class="wp-block-image size-large is-resized"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined04_20230227-macysunionsquarefuture.jpg?w=2500" alt="People are sitting in a busy shoe store with boxes and shoes around them." class="wp-image-253398" style="width:670px;height:auto"/><figcaption class="wp-element-caption">The impending San Francisco closure is one of 150 locations—about 30% of its total locations—that will meet the same fate over the next three years, according to an announcement from the retail giant.</figcaption></figure>

The retailer shifted its men’s apparel into its flagship location, and 120 Stockton was subject to a yearslong mixed-use redevelopment. New tenants of the property include on-demand meeting and event space company Convene and buzzy Japanese-Peruvian rooftop restaurant Chotto Matte.

The retailer shifted its men’s apparel into its flagship location, and 120 Stockton was subject to a yearslong mixed-use redevelopment. New tenants of the property include on-demand meeting and event space company Convene and buzzy Japanese-Peruvian rooftop restaurant Chotto Matte.

Then in 2019, Macy’s sold off the former I. Magnin building at 233 Geary St. to Palo Alto developer Sand Hill Property Co. for $250 million. Before the pandemic, the new owners pitched a project that would split up the building into retail space, offices and residential segments, but the current San Francisco real estate freeze means plans were largely put on pause.&nbsp;

Then in 2019, Macy’s sold off the former I. Magnin building at 233 Geary St. to Palo Alto developer Sand Hill Property Co. for $250 million. Before the pandemic, the new owners pitched a project that would split up the building into retail space, offices and residential segments, but the current San Francisco real estate freeze means plans were largely put on pause.&nbsp;

The building is currently the home of Union Square’s Louis Vuitton store, perhaps best known as the site of the viral smash-and-grab robberies that took place in November 2021.

The building is currently the home of Union Square’s Louis Vuitton store, perhaps best known as the site of the viral smash-and-grab robberies that took place in November 2021.

In a signal of the declining value of San Francisco real estate and Macy’s declining prospects, the company has attempted to significantly cut the assessed value of its flagship building in recent years to save on its property tax bill. As if flagging sales weren’t enough, during the peak holiday shopping season in 2022, over 400 Macy’s workers also <a href="https://sfstandard.com/2022/12/23/macys-workers-in-sf-are-striking-two-days-before-christmas-how-did-it-get-to-this/">walked out on their jobs</a>, striking against staffing and benefit cuts.&nbsp;

Macy&#8217;s workers in SF are striking two days before Christmas. How did it get to this?

In a signal of the declining value of San Francisco real estate and Macy’s declining prospects, the company has attempted to significantly cut the assessed value of its flagship building in recent years to save on its property tax bill. As if flagging sales weren’t enough, during the peak holiday shopping season in 2022, over 400 Macy’s workers also <a href="https://sfstandard.com/2022/12/23/macys-workers-in-sf-are-striking-two-days-before-christmas-how-did-it-get-to-this/">walked out on their jobs</a>, striking against staffing and benefit cuts.&nbsp;

Macy’s workers in SF are striking two days before Christmas. How did it get to this?

The store closure announcement marks a logical endpoint for a company that has gradually shed its San Francisco presence.&nbsp;

The store closure announcement marks a logical endpoint for a company that has gradually shed its San Francisco presence.&nbsp;

“While retailers close stores for various reasons, one of the reasons that is often central to the decision is demand for their product,” said Alex Sagues, a San Francisco retail broker at real estate firm CBRE.&nbsp;

“While retailers close stores for various reasons, one of the reasons that is often central to the decision is demand for their product,” said Alex Sagues, a San Francisco retail broker at real estate firm CBRE.&nbsp;

Macy’s more recent woes have been accelerated by a series of hostile takeover attempts from private equity firms and activist investors. Last week, private equity firm Arkhouse Management <a href="https://apnews.com/article/macys-arkhouse-brigade-takeover-proxy-4cc435a513e00f524e9d4796fd105a87" target="_blank" rel="noreferrer noopener">nominated nine new members</a> to Macy’s 14-member board of directors after its unsolicited $5.3 billion bid to purchase the company was denied.

Macy’s more recent woes have been accelerated by a series of hostile takeover attempts from private equity firms and activist investors. Last week, private equity firm Arkhouse Management <a href="https://apnews.com/article/macys-arkhouse-brigade-takeover-proxy-4cc435a513e00f524e9d4796fd105a87" target="_blank" rel="noreferrer noopener">nominated nine new members</a> to Macy’s 14-member board of directors after its unsolicited $5.3 billion bid to purchase the company was denied.

Earlier this month, after culling 13% of its corporate staff and shutting down a handful of other stores, the New York-based retailer elevated Tony Spring to CEO after he spent nearly 35 years at Macy’s Bloomingdale’s division.&nbsp;

Earlier this month, after culling 13% of its corporate staff and shutting down a handful of other stores, the New York-based retailer elevated Tony Spring to CEO after he spent nearly 35 years at Macy’s Bloomingdale’s division.&nbsp;

His strategy for turning around the flailing company? Reducing the number of Macy’s locations to 350 stores over the next three years and adding around 45 Bloomingdale&#8217;s and Bluemercury locations in their stead.

His strategy for turning around the flailing company? Reducing the number of Macy’s locations to 350 stores over the next three years and adding around 45 Bloomingdale's and Bluemercury locations in their stead.

His strategy for turning around the flailing company? Reducing the number of Macy’s locations to 350 stores over the next three years and adding around 45 Bloomingdale&#8217;s and Bluemercury locations in their stead.

‘A slow but steady decline’: The rise and fall of Macy’s flagship San Francisco store

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 <a href="https://sfstandard.com/2025/01/21/bloomingdales-to-exit-downtown-san-francisco-centre-mall/?itm_source=wp-parsely-content-helper">exiting the mall</a> with 20 years still on its lease marked the pulling of the plug.&nbsp;

Bloomingdale&#8217;s to exit downtown San Francisco Centre mall

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 <a href="https://sfstandard.com/2025/01/21/bloomingdales-to-exit-downtown-san-francisco-centre-mall/?itm_source=wp-parsely-content-helper">exiting the mall</a> with 20 years still on its lease marked the pulling of the plug.&nbsp;

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.&nbsp;

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.&nbsp;

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 process may not sound consequential, but it’s actually a key factor holding up the sale of the mall.

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 process may not sound consequential, but it’s actually a key factor holding up the sale of the mall.

At 800,000 square feet, it’s the city’s largest mall and was <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">once a piece of prime real estate</a>. 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.&nbsp;

Dead mall walking: Inside the reeling San Francisco Centre, store owners pray for a turnaround

At 800,000 square feet, it’s the city’s largest mall and was <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">once a piece of prime real estate</a>. 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.&nbsp;

The Market Street entrance at San Francisco Centre on Thursday, Oct. 24, 2024. The mall, which has been under receivership, is up for auction next month.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241027-potentialmallbuyers-es-25.jpg?w=2500" alt="The image shows the exterior of a building with the name &quot;San Francisco Centre&quot; beneath a circular architectural feature on a tiled wall." class="wp-image-325120"/><figcaption class="wp-element-caption">The mall, which has been under receivership, goes up for auction in February.</figcaption></figure>

People walk outside of Bloomingdale’s in San Francisco on Tuesday, Jan. 21, 2025. Bloomingdale’s announced it would close their location in San Francisco later this year, making it the most recent place department store to leave the city.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/01/1212024_bloomingdales_aar_1.jpg?w=2500" alt="A person walks in front of a Bloomingdale's store, with a modern glass and metal facade. Sunlight casts shadows on the pavement and building entrance." class="wp-image-357534"/><figcaption class="wp-element-caption">The exit of Bloomingdale’s left the mall without anchor tenants and tanked its occupancy rate.</figcaption></figure>

The distressed $566 million loan was <a href="https://sfstandard.com/2024/10/28/san-francisco-centre-mall-headed-to-auction/">supposed to be auctioned off</a> late last year, but that process was delayed twice at the behest of lenders. According to the special servicer, Midland Loan Services of PNC Bank, an auction is now scheduled for February.&nbsp;

Who wants to own a dead mall? The San Francisco Centre heads to auction

The distressed $566 million loan was <a href="https://sfstandard.com/2024/10/28/san-francisco-centre-mall-headed-to-auction/">supposed to be auctioned off</a> late last year, but that process was delayed twice at the behest of lenders. According to the special servicer, Midland Loan Services of PNC Bank, an auction is now scheduled for February.&nbsp;

“It could be that [the lenders] don’t know what they want to do next,” said Brad Blake, managing partner of Blake Griggs Properties, which is not involved in the mall but has served as a receiver on other properties undergoing tumultuous ownership changes.&nbsp;

“It could be that [the lenders] don’t know what they want to do next,” said Brad Blake, managing partner of Blake Griggs Properties, which is not involved in the mall but has served as a receiver on other properties undergoing tumultuous ownership changes.&nbsp;

“It’s hard to get consensus when there are multiple people at the table,” Blake added. “Some might want to cut their losses for whatever they can get, while others might see the property’s future value differently and want to explore different options.”&nbsp;

“It’s hard to get consensus when there are multiple people at the table,” Blake added. “Some might want to cut their losses for whatever they can get, while others might see the property’s future value differently and want to explore different options.”&nbsp;

An auction could also be postponed if a settlement is reached with the delinquent borrower or a new buyer emerges whom lenders prefer.

An auction could also be postponed if a settlement is reached with the delinquent borrower or a new buyer emerges whom lenders prefer.

San Francisco Centre Mall's occupancy rate by year

sf-standard/datawrapper-chart

The saga started in 2023, when the mall’s previous owners, Unibail-Rodamco-Westfield and Brookfield Properties, <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">defaulted on their loan obligations</a> and walked away from the property.&nbsp;

Westfield gives up downtown San Francisco mall

The saga started in 2023, when the mall’s previous owners, Unibail-Rodamco-Westfield and Brookfield Properties, <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">defaulted on their loan obligations</a> and walked away from the property.&nbsp;

This left it under the care of a court-appointed receiver, Trident Pacific, whose mandate is to preserve the value of the physical asset and existing cash flow, not <a href="https://sfstandard.com/2023/08/23/downtown-san-francisco-soccer-stadium-plans-for-former-westfield-mall-revealed/">redevelop it</a>. The firm did not respond to requests for comment.&nbsp;

Downtown San Francisco soccer stadium plans for former Westfield mall revealed

This left it under the care of a court-appointed receiver, Trident Pacific, whose mandate is to preserve the value of the physical asset and existing cash flow, not <a href="https://sfstandard.com/2023/08/23/downtown-san-francisco-soccer-stadium-plans-for-former-westfield-mall-revealed/">redevelop it</a>. The firm did not respond to requests for comment.&nbsp;

Any large-scale changes to the property would have to come out of the pockets of the lenders, Blake explained. So until new ownership comes in, the mall will likely remain as it is — gradually <a href="https://sfstandard.com/2024/06/14/san-francisco-centre-new-leases-launch-next-phase/">depleted of brand-name stores</a>.&nbsp;

Stripped of big brands, a downtown San Francisco mall embraces a new class of tenant

Any large-scale changes to the property would have to come out of the pockets of the lenders, Blake explained. So until new ownership comes in, the mall will likely remain as it is — gradually <a href="https://sfstandard.com/2024/06/14/san-francisco-centre-new-leases-launch-next-phase/">depleted of brand-name stores</a>.&nbsp;

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With the exit of Bloomingdale&#8217;s, which is owned by Macy’s, the largest retailer remaining at the mall is Zara, which occupies more than 27,000 square feet, according to loan reports.&nbsp;

With the exit of Bloomingdale's, which is owned by Macy’s, the largest retailer remaining at the mall is Zara, which occupies more than 27,000 square feet, according to loan reports.&nbsp;

With the exit of Bloomingdale&#8217;s, which is owned by Macy’s, the largest retailer remaining at the mall is Zara, which occupies more than 27,000 square feet, according to loan reports.&nbsp;

“It’s going to take a long time to turn around a large ship like this,” said Alex Sagues of CBRE, a retail broker with listings in Union Square and Mission Bay.&nbsp;

“It’s going to take a long time to turn around a large ship like this,” said Alex Sagues of CBRE, a retail broker with listings in Union Square and Mission Bay.&nbsp;

“There are very few tenants right now that can <a href="https://sfstandard.com/2024/02/21/san-francisco-centre-prospective-anchor-tenants/">take space of that size</a>,” he added. “There are even fewer who are interested in an urban location.”&nbsp;

Nordstrom left a giant hole in SF&#8217;s downtown mall. Could a foreign store soon fill it?

“There are very few tenants right now that can <a href="https://sfstandard.com/2024/02/21/san-francisco-centre-prospective-anchor-tenants/">take space of that size</a>,” he added. “There are even fewer who are interested in an urban location.”&nbsp;

Similar to the city’s <a href="https://sfstandard.com/2024/09/08/san-franciscos-hottest-office-market-heats-up/">slow-recovering office sector</a>, the demand for smaller floor plans in retail is robust, while the largest tenants are in the process of <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">downsizing their real estate.</a>&nbsp;

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Similar to the city’s <a href="https://sfstandard.com/2024/09/08/san-franciscos-hottest-office-market-heats-up/">slow-recovering office sector</a>, the demand for smaller floor plans in retail is robust, while the largest tenants are in the process of <a href="https://sfstandard.com/2024/04/24/how-much-big-tech-pulled-back-in-san-francisco/">downsizing their real estate.</a>&nbsp;

Real estate sources suggest that merging Bloomingdale’s with the Macy’s flagship in Union Square would make sense, as the latter owns the building it occupies at 170 O’Farrell St. and has said it wants to <a href="https://sfstandard.com/2024/12/01/exploring-macys-san-francisco-flagship-potential-sale/">shrink its footprint</a>.&nbsp;

Macy’s wants to sell its flagship store. Here’s what a deal could look like

Real estate sources suggest that merging Bloomingdale’s with the Macy’s flagship in Union Square would make sense, as the latter owns the building it occupies at 170 O’Farrell St. and has said it wants to <a href="https://sfstandard.com/2024/12/01/exploring-macys-san-francisco-flagship-potential-sale/">shrink its footprint</a>.&nbsp;

What will become of the massive empty spaces at the San Francisco Centre? The next owner will face Herculean obstacles in redeveloping the mall, in part because preservation of historic components such as the rotunda will drag out any planning and approval process.&nbsp;Developers say it&#8217;s unlikely that investors would be patient enough to demolish structures around those historic parts without interrupting the property’s existing revenue streams. To complicate matters further, <a href="https://sfstandard.com/2024/10/18/what-happens-to-public-school-buildings-after-closures/">the San Francisco Unified School District</a> owns a 75,675-square-foot lot beneath the mall — yet another stakeholder that would have to be at the table.&nbsp;

After public school closures, what happens to the real estate?

What will become of the massive empty spaces at the San Francisco Centre? The next owner will face Herculean obstacles in redeveloping the mall, in part because preservation of historic components such as the rotunda will drag out any planning and approval process.&nbsp;Developers say it's unlikely that investors would be patient enough to demolish structures around those historic parts without interrupting the property’s existing revenue streams. To complicate matters further, <a href="https://sfstandard.com/2024/10/18/what-happens-to-public-school-buildings-after-closures/">the San Francisco Unified School District</a> owns a 75,675-square-foot lot beneath the mall — yet another stakeholder that would have to be at the table.&nbsp;

What will become of the massive empty spaces at the San Francisco Centre? The next owner will face Herculean obstacles in redeveloping the mall, in part because preservation of historic components such as the rotunda will drag out any planning and approval process.&nbsp;Developers say it&#8217;s unlikely that investors would be patient enough to demolish structures around those historic parts without interrupting the property’s existing revenue streams. To complicate matters further, <a href="https://sfstandard.com/2024/10/18/what-happens-to-public-school-buildings-after-closures/">the San Francisco Unified School District</a> owns a 75,675-square-foot lot beneath the mall — yet another stakeholder that would have to be at the table.&nbsp;

Shoppers stroll inside the San Francisco Centre Mall on Market Street in San Francisco on Friday, Jan. 12, 2024. 
After dozens of closures to various businesses within Westfield Mall, including Nordstrom’s, the remaining businesses and their workers continue to serve customers and clients although the future of the mall and its businesses are in question.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/01/20240119-sfcentremall-105-edited.jpg" alt="A person sits on a white bench next to large potted plants on tiled flooring, viewed from above. They appear to be looking at something in their hands." class="wp-image-358335"/><figcaption class="wp-element-caption">Zara is the mall&#8217;s largest remaining retail tenant, according to loan reports.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/01/20240119-sfcentremall-105-edited.jpg" alt="A person sits on a white bench next to large potted plants on tiled flooring, viewed from above. They appear to be looking at something in their hands." class="wp-image-358335"/><figcaption class="wp-element-caption">Zara is the mall's largest remaining retail tenant, according to loan reports.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/01/20240119-sfcentremall-105-edited.jpg" alt="A person sits on a white bench next to large potted plants on tiled flooring, viewed from above. They appear to be looking at something in their hands." class="wp-image-358335"/><figcaption class="wp-element-caption">Zara is the mall&#8217;s largest remaining retail tenant, according to loan reports.</figcaption></figure>

A shoppers walks by the storefront of Adidas, which is having a closing sale, inside the San Francisco Centre Mall, formerly Westfield Mall, on Market Street on Friday, Jan. 12, 2024. After dozens of closures to various businesses within Westfield Mall, including Nordstrom’s, the remaining businesses and their workers continue to serve customers and clients although the future of the mall and its businesses are in question.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/inlined1_20240119-sfcentremall.jpg?w=2500" alt="A person walks past mirrored walls in a mall, holding a drink. Large red signs read &quot;STORE CLOSING SALE 50% OFF&quot; in the background." class="wp-image-283427"/><figcaption class="wp-element-caption">“It’s going to take a long time to turn around a large ship like this,” one broker said.</figcaption></figure>

The closest parallel in scale can be found at the former Vallco Shopping Mall, down the street from Apple’s headquarters in Cupertino. The 1.2 million-square-foot shopping center was partially demolished in 2018 to make way for a mixed-use community that would have featured the city’s tallest residential towers and office space, connected by the <a href="https://www.sfchronicle.com/bayarea/article/Cupertino-Vallco-green-roof-17024842.php">world’s largest “green roof.</a>”&nbsp;

The closest parallel in scale can be found at the former Vallco Shopping Mall, down the street from Apple’s headquarters in Cupertino. The 1.2 million-square-foot shopping center was partially demolished in 2018 to make way for a mixed-use community that would have featured the city’s tallest residential towers and office space, connected by the <a href="https://www.sfchronicle.com/bayarea/article/Cupertino-Vallco-green-roof-17024842.php">world’s largest “green roof.</a>”&nbsp;

But more than a decade since those plans were pitched, the project — spearheaded by the Bay Area-based Sand Hill Property Company, with backing from the Abu Dhabi Investment Authority — <a href="https://www.bizjournals.com/sanjose/news/2023/12/05/sand-hill-properties-vallco-the-rise-modifications.html">has been scaled back,</a> and the site remains a patch of dirt.&nbsp;

But more than a decade since those plans were pitched, the project — spearheaded by the Bay Area-based Sand Hill Property Company, with backing from the Abu Dhabi Investment Authority — <a href="https://www.bizjournals.com/sanjose/news/2023/12/05/sand-hill-properties-vallco-the-rise-modifications.html">has been scaled back,</a> and the site remains a patch of dirt.&nbsp;

“If a sovereign wealth fund couldn’t execute on that during a better economy, it’s going to take a miracle to do something of that scale in downtown San Francisco,” said a local developer who asked to remain anonymous to protect working relationships.&nbsp;

“If a sovereign wealth fund couldn’t execute on that during a better economy, it’s going to take a miracle to do something of that scale in downtown San Francisco,” said a local developer who asked to remain anonymous to protect working relationships.&nbsp;

Therefore, repurposing the existing structures at the San Francisco Centre would make more sense, observers say. Blake sees the storefronts and <a href="https://sfstandard.com/2023/06/14/san-francisco-centre-westfield-cinemark-closure-union-square/">abandoned movie theaters</a> as natural fits for classrooms and auditoriums for a satellite college campus. Sagues suggested converting one of the anchor stores into a multi-level parking garage to service neighboring Union Square, where leasing activity is strong.&nbsp;

Westfield&#8217;s San Francisco Centre losing movie theaters as owner abandons mall

Therefore, repurposing the existing structures at the San Francisco Centre would make more sense, observers say. Blake sees the storefronts and <a href="https://sfstandard.com/2023/06/14/san-francisco-centre-westfield-cinemark-closure-union-square/">abandoned movie theaters</a> as natural fits for classrooms and auditoriums for a satellite college campus. Sagues suggested converting one of the anchor stores into a multi-level parking garage to service neighboring Union Square, where leasing activity is strong.&nbsp;

“The [Bloomingdale’s closure] was not positive news, but it wasn’t unexpected,” Sagues said. “It might seem far away now, but it’s not going to take that big of a spark to ignite the recovery of retail on that block.”

“The [Bloomingdale’s closure] was not positive news, but it wasn’t unexpected,” Sagues said. “It might seem far away now, but it’s not going to take that big of a spark to ignite the recovery of retail on that block.”

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Major plot twist: Kyle Juszczyk is back with the 49ers — with $7 million guaranteed

‘A slow but steady decline’: The rise and fall of Macy’s flagship San Francisco store

San Francisco’s biggest mall needs to be reborn, but it’s stuck in financing hell

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A kicking battle? More targets for Kittle? What we just learned about next season’s 49ers