CINCINNATI–(BUSINESS WIRE)–Macy’s, Inc. (NYSE:M) today announced it has sold the top four floors
(levels five through eight) of underutilized space in its downtown
Seattle store, located at 300 Pine Street, to a controlled affiliate of
Starwood Capital Group to be converted to office use.
The Macy’s store will remain open and operating, with space reconfigured
by fall 2016 to accommodate all existing merchandise categories in a
more efficient manner. Selling space will be reduced from 363,000 square
feet on seven floors (the lower level plus floors one through six) to
283,000 square feet on five floors (the lower level plus floors one
“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
“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,” he added.
Macy’s 265 current downtown store associates will remain in place,
although some may be reassigned as departments are respaced.
Macy’s downtown Seattle building, with a total of 864,000 square feet,
was opened in 1929 as The Bon Marche. The nameplate converted to Macy’s
in September 2006.
The purchase price for the four floors, totaling more than 300,000
square feet, was $65 million in cash. Macy’s, Inc. will record a gain of
approximately $60 million in the third quarter of 2015. The gain was
originally anticipated and included in 2015 earnings guidance previously
provided by the company although it is being booked a quarter earlier
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on
global real estate. Headquartered in Greenwich, CT, the firm maintains
10 offices in four countries around the world, and currently has more
than 1,400 employees. Starwood Capital Group has raised approximately
$32 billion of equity capital since its inception in 1991, and currently
manages over $45 billion in assets. The Firm has invested in virtually
every category of real estate on a global basis, opportunistically
shifting asset classes, geographies and positions in the capital stack
as it perceives risk-reward dynamics to be evolving. For more than two
decades, Starwood Capital Group and its affiliates have successfully
executed an investment strategy that involves building enterprises
around real estate portfolios in both the private and public markets.
Additional information can be found at starwoodcapital.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 2014 sales of $28.105
billion. The company operates about 885 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,
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 transactions, prevailing interest rates and non-recurring
charges, 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.
(NOTE: Additional information on Macy’s, Inc., including past news
releases, is available at www.macysinc.com/pressroom).
Jim Sluzewski, 513-579-7764