Macy’s Continues Restructuring, Sells Assets to GGP
- Nov 01, 2016
By Ioana Neamt
Cincinnati—Macy’s Inc. is pushing on with its plan to operate fewer brick-and-mortar locations and focus on better-performing assets and a stronger digital presence with the disposition of five retail stores to General Growth Properties for $46 million.
Four of the stores were sold in the third quarter of 2016, while the Greenwood Mall property was sold earlier in the year. The portfolio comprised:
- The 151,000-square-foot Carolina Place in Pineville, N.C., opened in 1993;
- The 104,000-square-foot Oakwood Mall in Eau Claire, Wis., opened in 1991;
- The 146,000-square-foot Quail Springs Mall in Oklahoma City, opened in 1986 (the store was closed in spring 2016);
- The 265,000-square-foot Tysons Galleria in McLean, Va., opened in 1988; and
- The 124,000-square-foot Greenwood Mall in Bowling Green, Ky., opened in 1980.
Macy’s will continue to operate Tysons Galleria on a lease from General Growth Properties, and also operates another retail store in McLean, Va., at the nearby Tysons Corner Center. Carolina Place, Greenwood Mall and Oakwood Mall will continue operations through the holiday season and will be closed in the spring of 2017. Macy’s expects to realize a profit of $32 million from the portfolio sale in the third quarter of fiscal year 2016.
The disposition of the five assets falls in line with Macy’s strategy to close down weak-performing assets and concentrate its financial resources on growing a strong online presence and better-performing stores. The company plans to close 100 stores—roughly 15 percent of its properties—in early 2017, following a steep drop in sales over the past year. The reinvestment plan was first announced in January, as previously reported by Commercial Property Executive.
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