The untold cost...

Of a major city failing...

An iconic mall foreclosed for a fraction of the billion-dollar valuation it once commanded as Covid shutdowns and out-of-control crime left the seven-story behemoth a shell of its former self.

Valued at $1.2 billion nearly a decade ago, the San Francisco Centre Mall, previously known as the Westfield Emporium, was sold at an auction on Wednesday to lenders Deutsche Bank and JPMorgan Chase.

Before the Covid-19 pandemic, the mall served as a shopping hub in San Francisco, with residents and tourists flocking to its vibrant energy and big-name brands.

An appraisal at the end of 2022 valued the property at only $290 million, a 76 percent drop from its height before the pandemic.

Full article, HERE from the Daily Mail. h/t Stretch

I can remember when it first opened in the late 80s, and people flocked to the Nordstrom and Bloomingdales stores. We went down there just to wander around, not that we could afford anything they had...sigh...

This really hasn’t been covered by the US media, probably for a lot of reasons. NYC, DC, Seattle, and Portland are following similar trends, mostly with office buildings going for cheap prices as companies downsize, or move elsewhere.

The other thing that happens is the loss of tax revenue, which is critical to these cities maintaining services. As those services go away, the downward spiral just escalates. And what happens with those ‘service’ workers??? Where do they go, how do they afford to live?

I know in the DC area, most people in the service side of things couldn’t/didn’t live anywhere close to their work, because they could not afford it, unless they went into the really bad areas or racked and stacked way too many people in a house or apartment.

And don’t get me started on parking (lack of), or the cost of parking (through the roof)!

Friends in Philly don’t even own a car. They have no place to park one where they live in the Italian section, They either walk to shopping, or take the bus or transit if they need to get somewhere else in Philly. When they go on vacation, they rent a car for the vacation! They also told me about a friend who paid over $100,000 for a parking space in NYC! For a @#$%@! parking space!!!

I know SFO, Seattle, DC, LA, and Philly all suck for parking. BTDT... sigh

What happens next? Do they become the next Detroit? Or Cleveland? Or do they clean up their mess and reverse the losses? I don’t have any idea.

Your thoughts?