Macy’s Sells Upper Floors of Downtown Seattle Macy’s; Store to Be Reconfigured as Operations Continue
October 09 2015 - 11:00AM
Business Wire
Macy’s, Inc. (NYSE:M) today announced it has sold the top four
floors (levels five through eight) of underutilized space in its
downtown Seattle store, located at 300 Pine Street, to a controlled
affiliate of Starwood Capital Group to be converted to office
use.
The Macy’s store will remain open and operating, with space
reconfigured by fall 2016 to accommodate all existing merchandise
categories in a more efficient manner. Selling space will be
reduced from 363,000 square feet on seven floors (the lower level
plus floors one through six) to 283,000 square feet on five floors
(the lower level plus floors one through four).
“Macy’s on Pine Street is a very successful business serving a
thriving community of downtown residents and workers,” said Terry
J. Lundgren, Macy’s, Inc. chairman and chief executive officer.
“Our vision is to make the store easier and quicker to navigate
while also attracting new jobs and economic activity to space that
has not been fully utilized in recent years. While there will be
some construction activity inside the store over the next year, we
expect to continue to serve customers without interruption.
“This transaction is an example of the company’s ongoing efforts
to enhance shareholder value by identifying and pursuing strategic
real estate dispositions while maintaining the flexibility we
require to run a successful business,” he added.
Macy’s 265 current downtown store associates will remain in
place, although some may be reassigned as departments are
respaced.
Macy’s downtown Seattle building, with a total of 864,000 square
feet, was opened in 1929 as The Bon Marche. The nameplate converted
to Macy’s in September 2006.
The purchase price for the four floors, totaling more than
300,000 square feet, was $65 million in cash. Macy’s, Inc. will
record a gain of approximately $60 million in the third quarter of
2015. The gain was originally anticipated and included in 2015
earnings guidance previously provided by the company although it is
being booked a quarter earlier than expected.
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core
focus on global real estate. Headquartered in Greenwich, CT, the
firm maintains 10 offices in four countries around the world, and
currently has more than 1,400 employees. Starwood Capital Group has
raised approximately $32 billion of equity capital since its
inception in 1991, and currently manages over $45 billion in
assets. The Firm has invested in virtually every category of real
estate on a global basis, opportunistically shifting asset classes,
geographies and positions in the capital stack as it perceives
risk-reward dynamics to be evolving. For more than two decades,
Starwood Capital Group and its affiliates have successfully
executed an investment strategy that involves building enterprises
around real estate portfolios in both the private and public
markets. Additional information can be found at
starwoodcapital.com
About Macy’s, Inc.
Macy’s, Inc., with corporate offices in Cincinnati and New York,
is one of the nation’s premier retailers, with fiscal 2014 sales of
$28.105 billion. The company operates about 885 stores in 45
states, the District of Columbia, Guam and Puerto Rico under the
names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s
Backstage and Bluemercury, as well as the macys.com,
bloomingdales.com and bluemercury.com websites. Bloomingdale’s in
Dubai is operated by Al Tayer Group LLC under a license
agreement.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Macy’s management and are subject to significant risks and
uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including
conditions to, or changes in the timing of, proposed transactions,
prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores,
off-price and discount stores, manufacturers’ outlets, the
Internet, mail-order catalogs and television shopping and general
consumer spending levels, including the impact of the availability
and level of consumer debt, the effect of weather and other factors
identified in documents filed by the company with the Securities
and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past
news releases, is available at www.macysinc.com/pressroom).
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version on businesswire.com: http://www.businesswire.com/news/home/20151009005343/en/
Macy’s, Inc.Media:Jim Sluzewski, 513-579-7764Betsy Nelson,
415-393-3819orInvestor:Matt Stautberg, 513-579-7780
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