San Francisco Neiman Marcus Land Sold by Saks Global

Saks Global is selling part of its Neiman Marcus property in San Francisco’s Union Square.

Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, confirmed that it chose to sell the land under the Neiman Marcus store at 150 Stockton Street, the San Francisco Chronicle reported. The purchase price and buyer’s identity were not disclosed.

While the land is coming under new ownership, Saks Global will still own the 200,000-square foot building and has inked a long-term lease deal for the Neiman Marcus store with the property’s unnamed new owner. “This opportunistic real estate transaction does not impact our day-to-day operations,” a spokesperson told the Chronicle.

The lease agreement for the Neiman Marcus store, completed last month, is for 99 years. Saks Global separated the land from the building lease last month — a move that could provide additional security to the buyer should Saks Global file for bankruptcy, as is expected according to reports this week. Documents linked to the transfer placed the building’s market value at $160 million, down from its assessed market value in fiscal year 2024-2025 of $216.8 million.

“Investors want future income stability, and financially troubled tenants can choose to separately sell the land beneath a building, and lease it back,” Charles McCabe of San Francisco Capital Advisors told the Chronicle. “This safeguards the lease’s income with the building’s value, in addition to the corporate guarantee.”

Saks Global missed an interest payment of over $100 million due on its bonds on Dec. 30 and is reportedly in discussions with creditors to secure financing to navigate the bankruptcy process, the Wall Street Journal reported. On Jan. 2, Saks Global CEO Marc Metrick stepped down ahead of the looming bankruptcy.

The land sale is the second recent case of Saks Global selling land beneath a Neiman Marcus store.

Last month, Ashkenazy Acquisition purchased the land occupied by a Neiman Marcus building in Beverly Hills for an undisclosed amount. Similar to the Union Square deal, that Neiman Marcus location will still operate as a tenant under a long-term lease with Ashkenazy while Saks Global continues to own the building.

— Chris Malone Méndez