Macy's selling top 6 floors of State Street store for $30M
Macy's announced today that it plans to sell the top six floors of its State Street store for $30 million.
The retailer reported it will sell floors 8 through 14 to a private real estate fund sponsored by Brookfield Asset Management.
Brookfield intends to convert these largely unused floors into "dynamic, creative office space," Macy's said in a release.
As part of the transaction, Macy's Inc. will receive $30 million for the space.
"This transaction will enable the company to make Macy's on State Street a more vibrant shopping destination," the company said.
The transaction is expected to close by June.
Heading into the year, Macy's reported it continues to evaluate its real estate portfolio to identify opportunities where the redevelopment value of its real estate exceeds that of nonstrategic operating locations. The company said it plans to focus on creating additional value from its flagship stores while adding vitality to the retail experience.
The announcement of the sale was made when Macy's reported its earnings today.
The company said it had a solid fourth quarter, including a strong performance in January. "We are encouraged to see a trend improvement in our brick and mortar business, and we had the 34th consecutive quarter of double-digit growth in our digital business," said Jeff Gennette, Macy's chairman and chief executive officer. "Consumer spending was strong in the fourth quarter, and we were ready with improved execution and great products across all categories."
He is optimistic about the upcoming year. "We head into 2018 with an improved base business, healthy inventories, a focused and engaged organization and a clear path to return Macy's to growth."