Store anticipated to close in spring 2017 and slated for
redevelopment by 601W Companies
CINCINNATI--(BUSINESS WIRE)--Mar. 1, 2017--
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 skyway 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
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
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.
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)
View source version on businesswire.com: http://www.businesswire.com/news/home/20170301005817/en/
Source: Macy’s, Inc.
Andrea Schwartz, 312-781-4333
Matt Stautberg, 513-579-7780