BH Properties to Redevelop Mall on SF’s Fisherman’s Wharf

BH Properties has moved forward with plans to upgrade Anchorage Square, among the largest private properties on San Francisco’s Fisherman’s Wharf.

The Los Angeles-based investor has filed for permits to renovate the 322,000-square-foot shopping center and parking garage at 500 Beach Street, SFYimby reported.

Plans for the 2.6-acre square include refreshed storefronts and improvements to the mid-block courtyard.

BH Properties closed in August on its purchase of the mostly empty shopping center and a hotel for $65 million.

The seller was Anchorage Holdings, which bought the shopping center and hotel in 2004 for $85 million. Anchorage Holdings is an affiliate of the Abu Dhabi Investment Authority, based in the United Arab Emirates.

The mostly vacant retail complex and garage still sees plenty of foot traffic from tourists and some locals because it boasts the city’s only In-N-Out Burger stand.

BH announced plans in August for a “complete upgrade” of Anchorage Square, including its facade, storefronts and common areas as well as landscaping, lighting and signs.

The firm said it would seek “alternative uses” for its offices, which could mean more restaurants and entertainment venues. The cost of the pending overhaul was not disclosed.

The shopping portion of Anchorage Square includes a three-story building containing restaurants and shops. The complex also includes a 128-room Courtyard by Marriott hotel, 28,000 square feet of offices and a five-story parking garage for 685 cars, among the largest on the Wharf.

BH Properties President Jim Brooks cited the attraction of the Courtyard Marriott, which last summer was 80 percent occupied compared to an average occupancy of 70 percent for San Francisco hotels.

Anchorage Square, built in the 1970s, emptied out during the pandemic, including the closure of San Francisco’s only Krispy Kreme at 353 Jefferson Street, which closed in 2021. Other storefronts such as the former Subway and City Segway Tours have also stood vacant.

The permit application says the developer wants to “transform Anchorage Square into a captivating and immersive space” to help reinvigorate the dated property and increase foot traffic.

BH listed three primary goals for the renovation: storefront upgrades, improvements to the central courtyard and adding digital displays along Jefferson Street to draw more customers.

A timeline for construction was not disclosed.

In June last year, BH made headlines by buying the nearly 57-acre Oakland Hills campus of Holy Names University, a Catholic college that closed after 155 years. The $65 million purchase came just before a foreclosure auction.

It then hung a “for lease” sign on the property, with candidates including a range of schools.

After planting tall flags over new properties on Fisherman’s Wharf and the Oakland Hills, the company last month hired real estate investment veteran Peter Horn to run a new Bay Area office based in Anchorage Square.

— Dana Bartholomew