Macy’s, Inc. and Tishman Speyer announced they have signed a real estate purchase and sale agreement that will enable a re-creation of Macy’s Brooklyn store and further enliven one of New York City’s most dynamic, transit-rich neighborhoods.
Under the agreement, Macy’s will continue to own and operate the first four floors and lower level of its existing nine-story Fulton Street retail store, which will be reconfigured and remodeled. Tishman Speyer will purchase the portion of the site that Macy’s will not retain, which it will develop into approximately ten floors of distinct, first-class office space with appeal to a wide range of diverse companies. In addition, Tishman Speyer has agreed to purchase Macy’s Hoyt Street parking facility, which could be used for a future mixed-use development.
Macy’s will receive $170 million in cash from Tishman Speyer for its Brooklyn real estate assets and will receive an additional $100 million over the next three years that will be used as a contribution toward renovation of the Brooklyn Macy’s store.
“Brooklyn has emerged as one of the most dynamic, diverse and vibrant communities in America. This is a place we know well and have served with a highly successful downtown store on Fulton Street since 1865. In recent years, it has become clear that our Fulton Street store requires major improvements in order to serve the Brooklyn of today, as well as future generations of customers. We invested the time and resources necessary to fully study and understand the opportunity for making a major positive impact on Brooklyn and selecting the most capable partner in the project. We are now moving forward with a bold and exciting project with Tishman Speyer, one of the world’s most experienced and visionary developers,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer.
“As developer, owner and operator of such New York City icons as Rockefeller Center and the Chrysler Building, we are thrilled at the opportunity to partner with Macy’s for our first-ever project in Brooklyn,” said Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer. “We believe this partnership will produce a transformative mixed-use development in one of the nation’s foremost destinations for today’s creative workers and new economy companies.”
Macy’s store, currently occupying 378,000 square feet of selling space on eight floors will be re-created into a more efficient store occupying 310,000 square feet on five floors (levels one through four, as well as the basement). A portion of the interior of the building will be re-con-