Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has sold the land beneath its Neiman Marcus store at 150 Stockton Street in San Francisco’s Union Square. The company confirmed the sale to the San Francisco Chronicle but did not disclose the purchase price or the identity of the buyer.
Despite selling the land, Saks Global will retain ownership of the 200,000-square-foot building and has signed a long-term lease agreement for the Neiman Marcus store with the new owner. “This opportunistic real estate transaction does not impact our day-to-day operations,” a spokesperson told the Chronicle.
The lease for the Neiman Marcus store was finalized last month and will run for 99 years. Saks Global separated ownership of the land from that of the building in December—a move that may provide additional protection to the buyer if Saks Global files for bankruptcy. According to documents related to the transfer, the building’s market value is now listed at $160 million, down from its assessed value of $216.8 million in fiscal year 2024-2025.
Charles McCabe of San Francisco Capital Advisors explained to the Chronicle: “Investors want future income stability, and financially troubled tenants can choose to separately sell the land beneath a building, and lease it back. This safeguards the lease’s income with the building’s value, in addition to the corporate guarantee.”
Saks Global recently missed an interest payment exceeding $100 million on its bonds on December 30 and is reportedly negotiating with creditors for financing during bankruptcy proceedings. CEO Marc Metrick resigned on January 2 as bankruptcy appeared imminent.
This marks Saks Global’s second recent sale involving land under a Neiman Marcus store. Last month, Ashkenazy Acquisition bought land occupied by a Neiman Marcus location in Beverly Hills under similar terms; Saks Global continues to own that building while operating as a tenant under a long-term lease with Ashkenazy.
