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GW, Angelo Gordon secure $42M loan for 2 former Macy’s stores
The firms bought the suburban Macy’s Furniture and Mattress Gallery locations earlier this month with plan to repurpose them
GW Properties and Angelo Gordon & Company secured $42 million in financing to acquire and repurpose two Macy’s stores in the suburbs.
GW and Angelo Gordon bought Macy’s Furniture and Mattress Gallery stores, one near Woodfield Mall in Schaumburg and the other near Oakbrook Center in Oak Brook earlier this month for a total of more than $26 million.
The partners plan to repurpose the stores, possibly into new retail, hotels or office space, GW Principal Mitch Goltz told Crain’s earlier this month. He pegged the cost of redevelopment at upwards of $50 million.
Mesa West Capital provided the $42 million loan, according to Cook County and DuPage County records.
Chicago-based GW and New York-based Angelo Gordon paid $11.7 million for the Schaumburg location, 1200 North Meachum Road, according to Cook County records. They paid $14.7 million for the Oak Brook store at 1717 22nd Street, according to DuPage County records.
The sale of the properties continued a nationwide selloff that started in 2016 when Macy’s teamed up with Brookfield Asset Management to help the retailer sell or redevelop dozens of its stores, including some in the Chicago area.
Macy’s in June sold the top half of its flagship State Street store to Brookfield, which intends to convert the 700,000 square feet into offices.
In January, Macy’s sold its space inside the Northbrook Court shopping mall to General Growth Properties, which later was taken over by Brookfield. In September, Brookfield announced a sweeping plan to overhaul the property.