Macy's has found a new kind of buyer for one of its stores in Florida, selling the property for $40 million to the University of Miami as it looks to offload 50 underperforming locations this year.
The New York-based retailer has sold its South Dade Furniture and Mattress Gallery at 13251 S. Dixie Highway in Miami to the college, which is based in Coral Gables, Florida, according to CoStar data. The 78,000-square-foot store was built in 1972 and sits on a 4.6-acre parcel, according to CoStar.
Macy's itself didn't identify the buyer, but as part of the sales agreement it will be "leasing back the store, which continues to operate as normal," a spokeswoman for the retailer told CoStar News in an email.
However, several media reports said the University of Miami planned to use the store for a medical facility. That would be on on-trend in the retail world, where a number of former big-box stores nationally are being repurposed for nontraditional retail uses — as entertainment venues, and even healthcare and educational facilities.
The university has a healthcare system, operated via its Leonard M. Miller School of Medicine and University of Miami Health System, and has been expanding its physical footprint.
Macy's declined to elaborate on how long it plans to continue leasing the furniture gallery site or provide any other details. The college, a private research university with more than 16,000 students from around the world, didn't respond to a phone call or email from CoStar News on Monday.
Closing Stores
In February, Macy's, under fire by dissident investor groups, announced it planned to close about 150 stores in the next three years. About 50 locations are slated "to close at the end of fiscal 2024, typically post-holiday, which is our normal cadence," according to the Macy's spokeswoman.
"We will share more details, including timeline, as we finalize our plans," she said.
Macy's has retained Dallas-based SRS Real Estate Partners to market some of its properties that are on the block, including six stores in Texas, and one each in Alabama and Georgia. Those include the Macy's store at Town East Mall in Mesquite, Texas, just east of Dallas, and Fairview Town Center in a far north Dallas suburb.
Macy's has said it plans to generate about $750 million by selling properties.
The sale of the Miami store comes as Macy's reportedly has received a sweetened bid from Arkhouse Management and Brigade Capital. The groups are now offering $6.9 billion to acquire the department store chain, raising their bid to $24.80 a share from $24, according to The Wall Street Journal.
Arkhouse initiated a proxy fight with Macy's that ended in a settlement in April after the retailer agreed to put several of the dissident's nominees on its board. At that time, both sides said discussions would continue about a possible sale of the retailer to Arkhouse and Brigade.