The former chocolate factory and textile mill on the San Francisco waterfront that became one of the first major adaptive-reuse projects in the United States in the early 1960s has changed hands.
A new company called Embrace Real Estate has joined with its affiliate, asset management firm 1823 Partners, to buy historic Ghirardelli Square, a shopping and entertainment complex comprising 12 red-brick buildings near Fisherman's Wharf that’s become synonymous with the city.
The partners purchased the fully leased retail property from Atlanta-based Jamestown, which bought it in 2013 for $56 million along with a swath of office properties on the San Francisco waterfront.
Embrace will lead the leasing and day-to-day operations of the 105,000-square-foot complex along with Denver-based Continuum Partners. The firms did not disclose the price.
Embrace founder Brandon Tarpey described the property in a statement as “one of the most iconic mixed-use properties in the country." He added that the buyers will focus on adding "best-in-class tenants and experiences, and ensuring the Square remains both a premier destination for visitors and a place that resonates with the local community."
The property’s origins date back to 1862, when it was established as the headquarters of the Ghirardelli Chocolate Company by Italian confectioner Domenico Ghirardelli. A local developer purchased the property in the early 1960s after the factory moved to the East Bay to prevent it from being converted into apartments and hired an architect and landscape artist to transform it into shops and restaurants.
The property, which draws some 9 million visitors a year, went from half empty to fully occupied under Jamestown’s ownership.
The firm, known for transforming former industrial properties such as Manhattan’s Chelsea Market and Atlanta’s Ponce City Market, undertook a restoration of the landmark 1915 Ghirardelli sign and clock tower, which is designed in the fashion of a French chateau.
The tower rises more than 100 feet at the corner of North Point and Larkin streets, and the giant marquee — its giant white letters illuminated at night by tiny white bulbs — has become one of the city’s most recognizable symbols.
Retail recovery
The complex still houses the Ghirardelli Chocolate Company’s U.S. flagship store along with an array of restaurants, retailers and a Fairmont Heritage Place hotel.
Jamestown West Coast Regional Market Leader Alex Schwiebert said the company believes “the property is well positioned for continued momentum under the new ownership team.” He added: “We continue to believe in the long-term opportunity of San Francisco and are investing in our portfolio of properties throughout the Bay Area.”
Jamestown owns around 40% of the office buildings on the waterfront between Fisherman’s Wharf running south to the Ferry Building. It’s Waterfront Plaza and Levi’s Plaza complexes have attracted a growing number of AI startups recently, as Jamestown has worked to transform the area into hub for tech startups, with food trucks and outdoor summer concerts.
Records show that Embrace is headquartered in Miami. Before launching Embrace late last year, Tarpey was senior vice president of real estate at Aspen, Colorado-based M Development.
Continuum CEO Mark Falcone alluded to San Francisco’s recovery over the past year in the wake of the AI boom and efforts by local officials to reverse the perception of wholescale decay that dogged the city during and after the COVID-19 pandemic.
“There is real momentum in San Francisco under Mayor (Daniel) Lurie’s leadership, and we see Ghirardelli Square as an important part of that story,” Falcone said in a statement.
After several years of shuttering shops and restaurants, the city's retail picture is now on the mend, with consistent leasing velocity supporting a return to positive absorption over the past year. Much of this demand has been driven by experience‑based tenants, specialty grocers, fitness operators, and entertainment concepts, which are filling large spaces vacated by national retailers.