August 12, 2016
Macy’s continues to shed real estate in an effort to “optimize its real estate portfolio” nationally, and better compete with online shopping options. The giant retailer is closing its high-profile Men’s Store in San Francisco’s Union Square, and is negotiating a sale of the 263,640-square-foot property with an undisclosed party, which plans to redevelop the site.
The potential buyer could be Tishman Speyer, which Macy’s engaged last year to explore CRE options. If a deal is completed, the 120 Stockton St. location would be shuttered, and a new men’s shopping experience will be built within Macy’s flagship store across the street at 170 O’Farrell St. (pictured above)
Cincinnati-based Macy’s reportedly plans to close 100 more stores, reducing its 728 store count by roughly 14% percent. Since 2010, Macy’s has closed 90 stores and opened 13 new ones.
*In early November it was reported on Macy’s earnings call that the sale of the Men’s Store was valued at $250 million. The buyer was reportedly Morgan Stanley.
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