October 19, 2017
Toronto-based Brookfield Asset Management is cutting a deal with Macy’s involving roughly 700,000 square feet at the retailer’s flagship State Street building in Chicago. The real estate investor plans to buy and convert floors eight through 14 into office space.
The space would be accessed via a newly created lobby, and Macy’s is expected to retain ownership and operational control of the retail space on the lower half of the building.
The asset is a former Marshall Field’s building built in stages in the late 1800s and early 1900s that occupies a full block at State, Washington and Randolph streets and Wabash Avenue.
The move aligns with the Cincinnati-based department store chain’s strategy of divesting real estate holdings, and partner with developers in an effort to maximize the value of its vast portfolio. Separately, Macy’s had previously formed a partnership with Brookfield to redevelop some 50 Macy’s properties.
Eastdil Secured’s Stephen Livaditis is marketing the property for sale.
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