Retailer Macy's has sold a baker's dozen of stores across seven states for a total of $155.3 million as it takes steps to downsize its national brick-and-mortar footprint. The move attracted an assortment of buyers that included mixed-use developers and religious institutions.
The 13 transactions so far this year involved stores in Florida, Georgia, Massachusetts, New Hampshire, New York, Tennessee and Virginia, according to the Boston-based firm Atlantic Retail. Macy's, which is based in New York, tapped the brokerage to market the multiregional portfolio of retail locations. Some of the stores were Macy's furniture outlets.
The buyers that Atlantic Retail lined up reflect the evolution of uses for traditional department store mall anchors such as Macy's. The purchasers included not only other retailers, developers and religious institutions but also mall operators, medical users and public institutions, according to Atlantic Retail. However, it did not identify the specific buyers.
“Each site has proven to be a unique opportunity to attract interested parties across many asset classes, resulting in transactions with operators throughout the spectrum of the industry,” Peter Considine, a partner at the brokerage, said in a statement.
The divestitures are part of Macy's strategy dubbed Bold New Future, unveiled in February, to close underperforming stores and to sell some of its properties in a bid to bolster flagging sales and appease dissident investors. The retailer announced it would be shuttering 150 stores and that it expected to garner $750 million by selling real estate.
Macy's didn't respond to several emails from CoStar News on Wednesday asking about the sales that Atlantic handled, whether the retailer has sold any additional stores, and if it was closing the stores that it sold or leasing them back.
Macy's has been working with more than one brokerage. For example, it chose Eastdil to sell its flagship in downtown San Francisco, with TMG Partners and Prado Group reportedly interested in the property. And earlier this year Macy's retained SRS Real Estate Partners to market some of its other stores.
Macy's reported preliminary third-quarter earnings last week, noting it notched up $66 million in store sales during that period. The retailer is slated to post its final third-quarter results next week.
Also last week Macy’s completed the sale of its Gwinnett Place Mall and Gwinnett Furniture locations in Duluth, Georgia, for a total of $16.5 million. Those deals were Atlantic Retail’s 12th and 13th completed sales on behalf of Macy’s this year. In September, CoStar reported Gwinnett County was going to buy the two stores as part of its effort to redevelop the troubled mall at 2100 Pleasant Hill Road.
There are two other Macy's sales that Atlantic Retail handled that CoStar previously reported. In June, the University of Miami purchased Macy's South Dade Furniture and Mattress Gallery at 13251 S. Dixie Highway in Miami for $40 million. It reportedly plans to use the location for a medical facility.
And Boca Raton, Florida-based Second Horizon Capital acquired a Macy’s store and 15.2-acre plot at 101 Independence Mall Way at the Kingston Collection mall in Kingston, Massachusetts, for $6.75 million, according to CoStar data. As part of the sale-leaseback transaction, Macy's agreed to continue operating at the mall for a short period that includes the holidays, according to Second Horizon.
Washington Prime Group of Columbus, Ohio, purchased two of the Macy's. It paid $15 million for one at the Boynton Beach Mall in Florida and $10 million for one at WestShore Plaza in Tampa, Florida, according to CoStar data.
Atlantic Retail also brokered the sale of a Macy's in New Hampshire for $16.5 million to Torrington Properties of Boston, according to CoStar.
The complete list of Macy's sales handled by Atlantic Capital includes:
Florida
- Boca Raton, Macy’s Furniture.
- Boynton Beach, Boynton Beach Mall.
- Pembroke Pines, Macy’s Furniture.
- Miami, Macy’s Furniture.
- Tampa, Westshore Plaza.
Georgia
Massachusetts
- Kingston, Independence Mall.
New Hampshire
- Newington, Fox Run Mall.
New York
- Rochester, Mall at Greece Ridge.
Tennessee
- Memphis, Oak Court Mall.
Virginia
- Colonial Heights, Southpark Mall.
For the record
Atlantic Retail’s Boston office represented Macy’s in the deals in conjunction with its offices in West Palm Beach, Florida; New York City; Albany, New York; and Atlanta. Atlantic Capital Partners also played a key role in the assignment. The brokers involved included Peter Considine, Sam Varsano, David Smookler in Boston; Joe Mastromonaco in New York; Dan Lynch and Matt Lynch in West Palm Beach; Shannon Older in Albany; Shelley Jordan Bell in Atlanta; and Justin Smith, Chris Peterson and Sam Koonce of Atlantic Capital Partners.