Department store chain Macy’s has completed the sale of its property in downtown Minneapolis, US, to real estate firm 601W Companies.
601W Companies plans to redevelop the property located at 700 Nicollet Mall for mixed-use.
As part of its overall real estate strategy, Macy’s decided to sell the property due to its large amount of unproductive and unused space on the upper floors.
The real estate firm intends to use the upper floors as creative office space, while the street and skywalk levels will be used for new retail opportunities.
Macy’s chief stores officer Jeff Kantor said: “While we will not operate a downtown store going forward, Macy’s remains committed to our customers and associates at eight other stores in the Twin Cities, including six department stores and two furniture galleries, as well as on macys.com.”
Macy's Dayton- Hudson archive display and the oval room merchandise, including designer labels such as St. John, Max Mara and Armani Collezioni, will be moved from the Minneapolis property to its Southdale store.
With the initial agreement for the sale signed on 4 January, the retailer has commenced a clearance sale at the property. The clearance sale is expected to be completed in late March.
Opened originally as a Dayton’s store in 1902, the property was renamed Marshall Field’s in 2001, which was purchased by The May Department Stores Company in 2004.
Macy's later acquired it in 2005 and changed the name from Marshall Field to its own in 2006.
The current 280 employees at the downtown Minneapolis store, who will be affected by the closures, may be offered positions in nearby stores.