Macy’s, Inc. Completes Sale of Downtown Minneapolis Property
March 01 2017 - 8:30AM
Business Wire
Store anticipated to close in spring 2017 and
slated for redevelopment by 601W Companies
Macy’s, Inc. (NYSE:M) today announced the completion of the sale
of its downtown Minneapolis property located at 700 Nicollet Mall.
The property was acquired by 601W Companies, which is planning a
major mixed-use redevelopment for the historic building.
“As a part of our overall real estate strategy, Macy’s has been
investigating the best possible use for this property, especially
given the large amount of unproductive and unused space on the
upper floors. We have talked with a wide variety of partners in
pursuit of a plan that would create the most value for the company
and the community, and are pleased that the new owner intends to
invest substantial capital to repurpose the building,” said Jeff
Kantor, Macy’s chief stores officer. “601W Companies has an
exciting vision to redevelop the building into creative office
space on the upper floors and to pursue retail opportunities on the
street and skywalk levels. We believe this will be an outstanding
addition to the downtown Minneapolis community in the heart of the
city.
“Macy’s – and originally Dayton’s – has served the downtown
Minneapolis community at this location since 1902, and we deeply
appreciate the relationships we have built with generations of
Minnesotans, including our customers, associates, community leaders
and elected officials,” he said. “While we will not operate a
downtown store going forward, Macy’s remains committed to our
customers and associates at eight other stores in the Twin Cities,
including six department stores and two furniture galleries, as
well as on macys.com.”
The company noted that it has been honored to continue the
traditions of the Downtown store that the community has cherished
for decades and is committed to ensuring that much of the Dayton’s
heritage is preserved. For instance, the Dayton- Hudson archive
display will be moved and displayed in the Southdale store. The
Oval Room merchandise will be available at the Southdale store,
which includes designer labels such as St. John, Max Mara and
Armani Collezioni. Macy’s also has donated archival items to the
Minnesota Historical Society, including past iconic events’
displays, props, floor plans, candy kitchen machinery and
molds.
On Jan. 4, 2017, the company announced it had signed an
agreement to sell the downtown store building. Today’s announcement
is the finalization of that agreement. A final clearance sale in
the store began on Jan. 9, 2017 and is expected to run until late
March. The company anticipates that the store will close in spring
2017.
The original location opened as a Dayton’s store in 1902 and was
expanded several times until 1945. The store was renamed as
Marshall Field’s in 2001. Marshall Field’s was acquired by The May
Department Stores Company in 2004 which, in turn, was acquired by
Macy’s, Inc. in 2005. The Marshall Field’s nameplate was changed to
Macy’s in September 2006.
Going forward, Macy’s workforce in the Twin Cities area will
include approximately 1,500 associates. This includes 90 Macy’s
associates working in various district offices on the upper floors
of the downtown Minneapolis building who will be relocated to space
in other Macy’s stores in the Twin Cities area. The current
downtown Minneapolis store workforce includes 280 employees.
Associates displaced by the closing may be offered positions in
nearby stores where possible. Eligible full-time and part-time
store associates who are impacted by the store closing will be
offered severance benefits if positions are not available in other
locations.
The purchase price for the property was $59 million in cash.
Macy’s, Inc. will record a gain for the property of approximately
$47 million in the first quarter of 2017. The gain was originally
anticipated and included in 2017 earnings guidance previously
provided by the company.
About 601W Companies
The principals of 601W oversee one of America’s leading private
real estate acquisition, ownership, development and management
portfolios in the country. Over the past 25 years, 601W has
acquired a number of substantial and well-known commercial
properties throughout the country, aggregating 45 million square
feet, with a collective value in excess of $7.5 billion. In
relation to these deals, 601W has raised more than $2 billion in
equity, mostly from longstanding investors, and has consummated
transactions involving 40 major office buildings, including 11 in
Manhattan and 6 in Chicago.
Visit www.601wcompanies.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 2016 sales of
$25.778 billion. The company operates more than 700 department
stores under the nameplates Macy’s and Bloomingdale’s, and
approximately 125 specialty stores that include Bloomingdale’s
Outlet, Bluemercury and Macy’s Backstage, in 45 states, the
District of Columbia, Guam and Puerto Rico, 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 real estate
and other transactions, prevailing interest rates and non-recurring
charges, store closings, 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.
Macy’s disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
(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/20170301005817/en/
Macy’s MediaAndrea Schwartz, 312-781-4333orMacy’s InvestorsMatt
Stautberg, 513-579-7780
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