"H Mart's MASSIVE $37 million shopping center purchase in San Francisco will blow your mind!"

 H Mart has gone from anchor tenant to owner of its San Francisco location, purchasing the Oceanview Village Shopping Center for more than $37 million, according to public records. 

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The Korean-American supermarket chain purchased the shopping center on May 1 through GSC RE San Francisco LLC, which lists H Mart CEO Il Yeon Kwon as its manager in state filings. 

H Mart opened its San Francisco branch in the Ingleside neighborhood in the city's southwest corner in 2021 and is planning an expansion into the former 24 Hour Fitness space next door. 

This will bring H Mart's presence in the nearly 100,000 square foot shopping center to nearly 70,000 square feet, including 57 reserved parking spaces.

The 2002-era shopping center is built around nearly 340 parking spaces and has been owned by Denver-based Broe Real Estate Group since 2016. There are also 370 condominiums above ground-floor retail, which are not part of the sale. 

At the time Broe purchased the property for $30.6 million, existing tenants included Albertsons, Walgreens, 24-Hour Fitness and Chase Bank. Of these, only Chase remains, with H Mart leasing the Albertsons space.

There is also a Paris Baguette bakery, Extreme Pizza, Subway, and an AT&T store. L.A.-based Vietnamese-American coffee and boba shop 7 Leaves Cafe just opened its first branch in San Francisco in a shopping center right next to H Mart this month.

Oceanview Village has 11,200 square feet of vacant space that could be subdivided, according to marketing materials the property has been leasing since 2021.

Neither H Mart nor Broe responded to requests for comment. The deal appears to be off-market and the agents of both parties are unknown.

Even with its expansion plans, H Mart may not plan to keep it going in the long term, according to retail agent Cameron Baird of Avison Young. 

“It is not unusual for tenants to purchase properties at a discount and write themselves favorable rental agreements and then sell the properties as a net lease investment vehicle in the retail market,” he said.

It's quite common for developers to focus on these types of deals for smaller fast-food tenants like Starbucks and In-N-Out, but it's less common for larger tenants like H Mart, he added.

Lyndhurst, New Jersey-based H Mart has three other locations in the Bay Area — two in San Jose and a new store in Dublin. 

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