The Real Deal Miami

Macy’s building near Lincoln Road quietly marketed for sale, could fetch $80M

Sources say potential tenants Nordstrom Rack and Old Navy have eyed the 98k sf space

September 01, 2016 12:45PM
By Ina Cordle

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Macy’s (Inset: Macy’s President Jeffrey Gennette)

Macy’s leasehold on its store off Lincoln Road is quietly being marketed for sale, and could fetch as much as $80 million or more, sources told The Real Deal.

With 98,610 square feet, the building at 1675 Meridian Avenue represents the largest space available and one of the only ones suitable for a national “big box” store. Sources say Nordstrom Rack and Old Navy have eyed the space.

Other potential tenants could include such retailers as HomeGoods — whose sister store Marshalls is opening nearby, Saks Fifth Avenue OFF 5TH or Bed, Bath & Beyond, sources say.

The leasehold for sale has 34 more years left on it, Stephen Bittel, chairman of Terranova Corp., the largest owner of retail space on Lincoln Road, told TRD. He said HFF has the listing.

HFF declined to comment. The property has not been listed on CoStar.

Macy’s early this year announced its efforts to sell off real estate assets across the country, and in August said it would close 100 stores. But a Macy’s spokesperson declined to comment on efforts to market the Miami Beach store. “We are not commenting on any specific property or opportunities we might be considering,” spokesman Jim Sluzewski told TRD via email. “When we have announcements to make, we make them, as we have done regarding real estate in Brooklyn, Seattle and other cities. Otherwise, we do not comment.”

Sources say potential buyers could include national and international investors who already have holdings on Lincoln Road and beyond.

Any significant investor looking to buy street retail across the country is probably looking at it,” Drew Schaul, executive vice president of RKF, told TRD.

Yet among the property’s issues is whether the building’s exterior is considered historic, which would limit redevelopment. “There’s enough demand for a developer to carve up that space,” Schaul said. “What will push the rents up is how you can alter the existing facade.”

The building was built in 1953 and was the former home of Burdines. In 1956, Burdines merged with Federated Department Stores, which also owned Macy’s, Bloomingdale’s and other stores. By 2005 Federated brought all its Burdines stores under the Macy’s brand.