TMG, Bridges Buy Downtown San Francisco Retail Asset

February 10, 2026

Retail Investment News San Francisco More West

Sony and Starwood Capital Group are among the property's past owners.

exterior shot of Metreon at night — Located at 135 Fourth St., Metreon rises four stories in San Francisco’s Yerba Buena neighborhood. *Image courtesy of Metreon*

TMG Partners, alongside equity partner Bridges Capital LLC, has acquired Metreon, a 320,000-square-foot retail and entertainment destination in downtown San Francisco. The property changed hands through a deed-in-lieu transaction from Acore Capital.

TMG is purchasing the leasehold interest in the asset, as the city of San Francisco continues to own the underlying land. The ground lease runs through 2082.

Sale negotiations began last year, as reported by The San Francisco Standard. Back then, the property’s assessed value had reached $150.7 million.

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Completed in 1998, the four-story building was originally developed by Sony as an interactive entertainment destination. Sony sold the asset to The Westfield Group in 2006, which sold it to Starwood Capital Group in 2012, in a $1.1 billion portfolio transaction. In 2021, the property became subject to an $80 million loan originated by Acore Capital, according to Yardi Matrix data.

The shopping center is primarily leased to Target and AMC, which operates a 16-screen movie theater there. Additional tenants include Chipotle, Freshroll, Dabao Singapore, Heytea and Yokai Express, among others.

The new ownership plans to enhance the property’s experiential offerings across its theaters, dining, retail and common areas. TMG also plans to reimagine and rebrand the fourth-floor City View event space in collaboration with placemaking group Skylight.

San Francisco’s retail scene on the mend

San Francisco’s retail market has begun to show signs of recovery, according to a fourth-quarter report by Cushman & Wakefield. The market witnessed 191,500 square feet of positive net absorption and 329,900 square feet of annual absorption, the first positive full-year absorption since 2022.

Overall vacancy dipped to 6.7 percent, down roughly 50 basis points year-over-year. It was the rate’s first drop below 7 percent in two years.

Meanwhile, retail investments amounted to $144.9 million, bringing the year’s total sales volume to $379.4 million. The value is nearly double the $190.1 million recorded in San Francisco in 2024.