Macy’s taps Eastdil to shop stake in Herald Square flagship

Retailer also seeking partners in Chicago, San Francisco, Minneapolis stores

New York /
Jan.January 07, 2016 10:05 AM

Under pressure from an activist investor, Macy’s is looking to sell partnership stakes in some of its flagship locations, including its iconic Herald Square store.

The firm hired Eastdil Secured to “approach potential interested parties” about possible joint ventures. Eastil will also handle sales for Macy’s locations in cities such as San Francisco, Chicago and Minneapolis.

One of the parties is Tishman Speyer, which has expressed interested in buying into to at least four of the companies’ stories, Bloomberg reported.

Macy’s is struggling at the moment, hit by a weak holiday sales season. The company announced Wednesday it plans to close 40 stores and lay off about 4,350 employees.

An activist Macy’s investor – Starboard Value, a Midtown East-based financial adviser – has recently pressured the company to more effectively monetize its real estate holdings.

It pushed Macy’s to form a real estate investment trust, a suggestion the company rejected.

Tishman was working with the firm at the time to formulate a national real estate strategy, but that relationship has now concluded, according to Bloomberg.

In August, Macy’s sold 422 Fulton Street in Downtown Brooklyn to Tishman for $170 million. The company continues to operate its store at the location.

The company’s Herald Square store is “probably one of the most significant retail buildings in the world,” Newmark Grubb Knight Frank’s Jeffrey Roseman told Bloomberg. “It’s high profile, it’s high visibility. If you want to own a piece of real estate in New York and you have any sort of ego, it’s as good as it gets.” [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
Cartier's Cyrille Vigneron and 653 Fifth Avenue (Cartier, Linkedin, Getty)
Cartier betting on appetite for luxury with US retail expansion
Cartier betting on appetite for luxury with US retail expansion
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
1 Geoffrey Way in Wayne NJ (Loopnet, Getty)
Homes are us? Passaic County weighs dev plans for ex-Toys R Us HQ
Homes are us? Passaic County weighs dev plans for ex-Toys R Us HQ
A photo illustration of Tishman Speyer CEO Rob Speyer and 28-10 Jackson Avenue in Long Island City (Getty Images, Tishman Speyer, Google Maps)
LIC tenant claims Tishman Speyer violated rent stabilization
LIC tenant claims Tishman Speyer violated rent stabilization
Ralph Lauren's Patrice Louvet (Getty, Ralph Lauren)
Ralph Lauren to add 250 stores in massive retail expansion
Ralph Lauren to add 250 stores in massive retail expansion
Michael Remer and Richard Hodos (JLL, Getty)
Top retail broker Richard Hodos jumps from CBRE to JLL
Top retail broker Richard Hodos jumps from CBRE to JLL
HJ Kalikow's Peter Kalikow with 101 Park Avenue (101 Park, Getty)
HJ Kalikow’s 101 Park inks lease with virtual golf links
HJ Kalikow’s 101 Park inks lease with virtual golf links
Commercial Real Estate, Retail
Bed Bath & Beyond washing hands of 56 locations
Bed Bath & Beyond washing hands of 56 locations
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...