Ashkenazy Facing Foreclosure on Union Square Retail

Ashkenazy Acquisitions is facing a potential foreclosure on two prominent Union Square retail properties as the neighborhood’s recovery collides with a familiar problem: empty storefronts and expensive debt.

The New York-based investor has reportedly defaulted on a $40 million loan backed by the landmark former Savings Union Bank building at 1 Grant Avenue, and a Chanel-anchored retail property at 156 Geary Street, the San Francisco Business Times reported. Notices filed July 14 give Ashkenazy 90 days to repay $41.1 million in outstanding debt. The filings could set the foreclosure process in motion, though the firm and its lenders could still modify the loan or reach another resolution.

The debt originated as a $30 million loan in 2013 and was later transferred and modified to $40 million in 2015. Ashkenazy bought 1 Grant in 2015 for $16.3 million and acquired 156 Geary that same year for $22.7 million.

Both properties face uphill leasing battles. The 1 Grant building, spanning 20,000 square feet, is vacant after the Museum of Ice Cream left in 2021. Chanel, which has leased at 156 Geary since 2008, is expected to relocate its flagship from 156 Geary to 195 Grant Avenue, potentially leaving the 11,000-square-foot building empty when its lease expires in less than two years.

Ashkenazy could sell the properties to help repay the debt, though its plan of action is not yet clear. The firm previously put One Grant on the market in 2021, following the departure of the Museum of Ice Cream, though a sale never materialized. Ashkenazy has also defaulted on other major downtown San Francisco properties, including One Stockton and One Union Square, the latter of which went back to its lender in 2025.

Union Square cron hard times after the departures of major retailers like Nordstrom, Macy’s and Bloomingdale’s in the wake of the pandemic. The neighborhood appears to be showing signs of life, however, with new experiential concepts such as Midjourney’s planned tech-enhanced spa and recent investment in 180 Post Street. Reichmann heir Ian Jacobs is among the investors who have been confident in Union Square’s recovery, spending tens of millions on several retail and office buildings in the neighborhood since last year with the most recent deal at 180 Post Street totaling $48.5 million, The Real Deal reported.

— Chris Malone Méndez