With the completion of the real estate transaction of Macy's with Tishman Speyer, the Brooklyn Store of Macy's on Fulton Street will now be able to undergo a series of re-creations and redevelopments.
"We are looking forward with great anticipation to the implementation phases of this project, which will transform Macy's Brooklyn store and significantly enhance the downtown Brooklyn community, which is emerging as a vibrant center for living, shopping, working and entertainment," said Terry J Lundgren, chairman and chief executive officer of Macy's, Inc. "Moreover, this collaboration with Tishman Speyer is a great example of how our company can create significant additional value by strategically exploring the potential of our real estate assets, while maintaining a robust store presence that is being upgraded to drive future growth."
According to the press release of Macy's in Business Wire, the real estate transaction of Macy's with Tishman Speyer includes the floors beyond the fourth floor of the nine-storey Fulton Street retail store and Macy's Hoyt Street parking facility. Macy's will receive $270 million in cash from Tishman Speyer for the transaction. $100 million of the received amount will be used for the reconfiguring and remodeling project of the Macy's Brooklyn Store, which is set to begin this Spring and will continue over the next three years.
Tishman Speyer plans to redevelop the space it bought from Macy's into approximately 10 floors of distinct and first-class office space, while the parking facility would be utilized to become a future mixed-use development.
Macy's received $68 million in cash from the sale in the fourth quarter of 2015, with the remaining $202 million in cash to be received in fiscal 2016 and fiscal 2017.
Macy's, Inc is one of the nation's premier omnichannel retailers that operates about 900 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.
