The flagship of Macy’s Herald Square, Bloomingdale’s is unlikely to undergo redevelopment

The flagship of Macy’s Herald Square, Bloomingdale’s is unlikely to undergo redevelopment

Steve Cuozzo

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The reported $21-per-share bid by Brigade Capital Management and Arkhouse Management for Macy’s Inc. shares is… Which it doesn’t already own, is almost certainly targeting the department store giant’s real estate assets, analysts have said since the bid came out. last week.

Hedge funds will pay $5.8 billion to acquire Macy’s, far less than the estimated value of its properties of $7 billion to $8 billion.

Macy’s owns nearly half of its 500 stores in the United States.

The company also controls retailer Bloomingdale’s and cosmetics chain Bluemercury, which has about 300 locations.

But despite speculation that potential new owners might seek to demolish or build on top of the company’s crown jewel locations — the flagship in Macy’s Herald Square and Bloomingdale’s on Lexington Avenue at East 59th Street — neither property is considered a target for redevelopment.

Long before the takeover bid, Macy’s itself announced a plan to build a 900-foot office skyscraper atop the 11-story main building in February 2020.

Macy’s announced a plan to build a 900-foot office skyscraper above the 11-story main building in February 2020. Andicazi

The pandemic has halted the idea. Then, in May 2021, CEO Jeff Gennette reiterated the vision, saying Macy’s would spend $235 million to upgrade transportation and pedestrian features at Herald Square — a step toward getting the zoning change needed for a new tower.

But the initiative did not go anywhere. Macy’s has not submitted any application to them, City Planning Department spokesman Joe Marvelli told Realty Check. Macy’s spokeswoman Stephanie Jimenez said the store “declines to comment at this time.”

One prominent dealmaker quipped to Realty Check: “Are you kidding? Offices over Herald Square? In the worst market in fifty years? At the same time when four or five other high-rise plans aren’t going anywhere either?”

Public records show that the Bloomingdale’s at 1000 Third Avenue is a long-term tenant. Rossella de Berti

“Yes, everything could change in a few years,” the insider admitted. “But acquisitions are not usually based on the long term. Hedge funds want returns immediately.

Bloomingdale’s location at 1000 Third Ave. between East 59th and East 60th would lend itself more to a luxury residential tower than offices — that is, if Macy’s is actually owned.

In fact, public records show the luxury store is a long-term tenant.

The land is owned by Bloomingdale Family Trust, which has leased it to the retailer until 2058.

In other words, the trendy store isn’t going anywhere.

Bloomie’s customers don’t have to worry about losing their favorite place for men’s and women’s clothing in their lives.




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