Tishman Speyer agreed to buy Macy’s Downtown Brooklyn property for $170 million, the developer announced today, and will redevelop the 378,000-square-foot property into offices as well as a smaller retail space for the department store.
Macy’s will continue to own and operate the first four floors of the property, located at 422 Fulton Street. Tishman Speyer will develop 10 floors of office space above the store. The developer is also buying Macy’s Hoyt Street parking facility, which has future development potential.
“As developer, owner and operator of such New York City icons as Rockefeller Center and the Chrysler Building, we are thrilled at the opportunity to partner with Macy’s for our first-ever project in Brooklyn,” Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said in a statement Wednesday.
Under the agreement, Macy’s will occupy about 310,000 square feet over five floors. Tishman Speyer will contribute an additional $100 million toward the renovation of the store over the next three years. Construction on both the Macy’s space and the office portion is slated to kick off in 2016 and is expected to be completed by the fall of 2018.
Tishman Speyer’s current projects include a $3.2 billion mixed-use tower in the Hudson Yards district and an 1,800-unit residential project in Long Island City.
Macy’s just signed a major lease in Long Island City, agreeing to take 150,000 square feet at the Factory Building at 30-30 47th Avenue.