Embrace, 1823 Partners Buy Ghirardelli Square Complex

San Francisco’s iconic Ghirardelli Square is under new ownership.

The waterfront tourist destination in Fisherman’s Wharf has been sold to a partnership between real estate investment firm Embrace Real Estate and Miami-based asset management company 1823 Partners, the San Francisco Business Times reported. Atlanta-based real estate investment and management company Jamestown L.P. was the seller.

Financial details of the acquisition, including price, were not disclosed. Jamestown previously paid $56 million for the 12-building complex at 900 North Point Street in 2013, according to the San Francisco Standard. The Embrace and 1823 partnership is believed to have paid between $75 million and $80 million for the property, according to one source familiar with the site cited by the Business Times.

Embrace and Denver-based developer Continuum Partners will join forces to run leasing and day-to-day operations at Ghirardelli Square. Embrace plans to “elevat[e] the merchandising” of the property and maintain visitor traffic while “introducing best-in-class tenants and experiences,” Embrace Real Estate founder Brandon Tarpey said, per the Business Times.

Jamestown acquired the retail portion of Ghirardelli Square in 2013 from Royal Bank of Scotland after the lender denied previous owner J.M.A. Ventures a loan extension, moving to foreclose on the property. At the time of that sale, the shops were 55 percent leased. In the subsequent years, the firm invested in improvements and restorations aimed to reposition the property, including revamping the 110-year-old clock tower, which was completed last year, and remodeling the anchor Ghirardelli chocolate store in 2023. Retail tenants such as Subpar Miniature Golf, San Francisco Brewing Company, Barrio and Square Pie Guys joined the mix, and the retail space is fully occupied today.

Fisherman’s Wharf has seen an uptick in foot traffic over the past year. Its visitor count is up almost 11 percent year-over-year through the first quarter, marking its strongest first quarter since before the pandemic. The seaside neighborhood saw approximately 13 million visitors last year, down from 15.5 million visitors in 2019.

— Chris Malone Méndez