The Real Deal New York

Tishman scores $194M loan for Macy’s overhaul in DoBro

Developer planning to renovate upper floors
By Kathryn Brenzel | January 03, 2017 01:00PM

Rendering of renovated exterior at Macy’s Downtown Brooklyn location (credit: FRCH Design Worldwide) and Rob Speyer

Tishman Speyer pulled off a $194 million construction loan to overhaul office space at its Macy’s building in Downtown Brooklyn.

The developer is planning to redevelop an 11-story, 143-year-old office-and-retail building at 422 Fulton Street in Brooklyn that has a Macy’s department store on the ground floor. Bank of the Ozarks provided the latest construction loan, which is likely for the build out of office space on the building’s upper floors, documents filed with the city on Tuesday show.

Tishman purchased the upper floors of the 838,000-square-foot building in 2015 for $270 million, a sum that is helping to pay for a proposed $100 million renovation of the store. Macy’s still owns the first four floors of the building but is downsizing the store space.

In March, The Real Deal reported that Tishman was seeking $60 million in EB-5 financing for its planned renovation of the building’s upper floors, which would’ve only accounted for 12 percent of the $491 million that Tishman was looking to raise for the project. It’s unclear how much other financing Tishman has raised for the project so far.

A spokesperson for Tishman Speyer TRData LogoTINY could not be immediately reached.