Obi Anyanwu
Oct 12, 2015
Macy’s sells upper floors of downtown Seattle store
Obi Anyanwu
Oct 12, 2015
Macy’s on Friday announced that it has sold the top four floors of its downtown Seattle store on 300 Pine Street. The four floors, levels five through eight, have been sold to Starwood Capital Group, a private investment firm with a focus on global real estate, which will convert the space into offices.
The purchase price of the four floors, accounting for over 300,000-square-feet, totaled to $65 million in cash, $60 million of which Macy’s will receive in Q3 2015. The store will remain open, but will be reduced from 363,000-square-feet on seven floors to 283,000-square-feet on five floors.
“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.
Macy’s 265 associates will also remain but may be reassigned according to the new store layout. The space will be reconfigured by fall 2016.
“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,” Lundgren added.
Macy’s downtown Seattle building opened in 1929 as The Bon Marche with 864,000-square-feet. The nameplate converted to Macy’s in September 2006.
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