Brookfield buys top half of State Street Macy’s building for $27M

The 2 companies previously announced plans to partner on efforts to redevelop other Macy’s properties

Jun.June 25, 2018 11:30 AM

Brookfield’s Bruce Flatt and Macy’s (Credit: swimfinfan via Flickr)

Brookfield Asset Management closed on its deal to buy the top half of the Macy’s building at State and Randolph streets in the Loop.

The final price for the 700,000 square feet on floors 8 to 14 was $27 million, according to Cook County property records.

Eastdil Secured brokered the deal.

Brookfield and Macy’s in 2016 announced plans to team up to redevelop or sell some 50 of the struggling retailer’s properties.

In February, Macy’s chief financial officer Karen Hoguet told investors Macy’s would receive a percentage of profits earned by Brookfield from the floors it bought, and that a portion of the sale price will be reinvested into the store to make improvements, according to the Cincinnati Business Courier.

The pending sale of the State Street location was first reported in October by the Chicago Tribune, which said Brookfield was expected to convert its floors into loft offices. Under that plan, the store would remain on floors 1 to 7.

Despite a slight improvement in sales during this past holiday season, Macy’s announced in January it would close seven stores and cut 5,000 employees nationwide.

The former Marshall Field’s building on State Street was designed by Daniel Burnham and built in stages in the late 1800s and early 1900s, according to the Tribune. It became a Macy’s in 2006, after the Cincinnati-based firm acquired the venerable Chicago retailer.

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