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

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

TRD 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

Opening Ceremony founders Humberto Leon and Carol Lim and the brand's Soho location at 35 Howard Street (Credit: Getty Images, Google Maps)  

Opening Ceremony is the latest Soho retailer to close

Town & Country Crossing in Town & Country, MO; The Crossroads in Royal Palm Beach, FL; and Mission Bay Plaze in Boca Raton, FL

Here’s why open-air strip centers are outperforming enclosed malls

The Wizarding World of Harry Potter (Credit: Getty Images)

Harry Potter-themed store probably won’t get its dragon

591-593 Broadway (Credit: Google Maps)  

Another pricey retail building in Soho is up for sale

675 Eighth Avenue (Credit: Google Maps and Chik-fil-A)

Chick-fil-A is arriving at The Hive in Times Square

The Spiral and Debevoise presiding partner Michael W. Blair (Credit: Tishman Speyer)

Debevoise signs big lease at Tishman Speyer’s Spiral

Time Out Market at 916 West Fulton Market and Revival Food Hall at 125 S. Clark Street 

Does Chicago still have an appetite for food halls?

Blades founder Jeff Kabat and the store at 659 Broadway (Credit: LinkedIn and Google Maps)

Skate gear retailer Blades to close its last store