Possible deal to sell San Jose shopping center hits uncertain timeline

SAN JOSE — Plans to sell a big shopping mall in San Jose have hit a speed bump in the form of an uncertain timeline that has emerged at a time of brutally high interest rates and inflation.

Uncertainty over a possible sale of Westfield Oakridge mall in south San Jose emerged on Thursday in materials prepared for an earnings report from Unibail Rodamco Westfield, the France-based owner of many shopping centers on two continents, including two in the South Bay.

In February 2024, executives with Unibail Rodamco Westfield, also known as URW, disclosed the company had struck a deal to sell Oakridge shopping center for an unspecified price.

At the time, Unibail Rodamco Westfield estimated the deal would be completed sometime during the April-through-June second quarter.

That timeline has now slipped, the company stated in a financial report regarding its results for the first half of 2024.

“On July 11, 2024, URW extended the exclusivity period for the sale of Westfield Oakridge,” Unibail Rodamco Westfield stated in the earnings presentation. “URW had received a nonrefundable deposit of $30 million.”

In real estate and business transactions, an exclusivity period typically refers to a time frame during which a prospective buyer of a property or other asset has the exclusive right to complete the purchase.

Unibail Rodamco Westfield didn’t specify when the deal might be complete.

The company, however, did make it clear that vital components of the current economy in the United States could be affecting the ability of buyers to complete purchases.

“Investment market conditions remain challenging as interest rates stay higher for longer than expected,” Unibail Rodamco Westfield Chief Executive Officer Jean-Marie Trinant said during the earnings call. “Rate cuts in the U.S. have not yet materialized.”