The proposed sale covers about 1.15 million square feet at 865 Market St., near Fifth and Market streets. It excludes the former Bloomingdale’s building at 845 Market St., a separate, 350,000-square-foot property owned by Macy’s. Seven Equity Group declined to comment, as did CBRE, which is handling the sale.

The selection does not mean the transaction is complete. Financing and other steps may still be required before a closing, and the final sale price has not been disclosed. Earlier this year, local developers Presidio Bay Ventures and Prado Group offered $130 million for the mall property, excluding Bloomingdale’s, but withdrew in July after talks stalled with the San Francisco Unified School District, which owns part of the site. Some bids in the current process were below $100 million, according to people familiar with the sale.

The current sale is the second effort to find a buyer since lenders took control of the mall through foreclosure in November. Three teams had advanced to the final round: Seven Equity Group; B3 Investors; and a partnership of TMG Partners and Urban Land Development. TMG and Urban Land Development, which had proposed a sports and entertainment complex, dropped out this week, according to people familiar with the process.

B3 Investors is also pursuing the former Bloomingdale’s property in a separate potential deal. People familiar with those negotiations have valued that transaction at $40 million, though it has not closed. Maryland-based KG Growth Partners previously said it represented a buyer interested in both properties and asked the city about permits for an AI data center at Bloomingdale’s. The firm has not said whether that client remains interested.

Seven Equity Group has bought several downtown properties as San Francisco’s commercial real estate market has weakened. Since 2025, it has acquired 731 Market St. for $15 million, a former WeWork building at 25 Taylor St. for about $6.8 million, and two buildings along Mission Street next to the mall for $15.5 million. In September, the firm and a private investor bought two Howard Street office buildings for $65.5 million. Seven Equity also owns the building at 420 Taylor St., where social networking company Nextdoor is headquartered.

The scale of any redevelopment and its timeline remain uncertain. Fitch estimates that roughly 794,000 square feet tied to a distressed commercial mortgage could recover only $35 per square foot in a distressed sale. The agency said the mall is the largest contributor to expected losses in the mortgage pool, which also includes troubled loans tied to properties in Oakland, Los Angeles, Mesa, Arizona, and Lafayette, North Carolina.

The mall’s future is a significant question for downtown, where vacant commercial spaces have weighed on the city’s recovery. A buyer has been identified for most of the complex, but plans for the property and the outcome of the sale remain unsettled.