Macy's has inked a deal with Tishman Speyer to redevelop the department store's sad Brooklyn flagship. The company put its 1865-built Brooklyn store on the market in July of last year, along with a Macy's-owned neighboring parking garage at 11 Hoyt Street with hopes of luring a developer who would either rehabilitate the building or construct a new Macy's in place of the parking garage. Under Tishman Speyer's redevelopment plan, Macy's will remain in control of the first five floors of the nine-story building at 422 Fulton Street, including a cellar level, while selling the remaining five floors off to Tishman who will redevelop them into high-end office space. The press release announcing the $170 million deal mentions that Tishman will develop approximately ten floors of office space with "ample outdoor spaces" at the site, which suggests that the building may be getting an addition.
Macy's will be condensing its store from 378,000 square feet down to 310,000from eight to five floorsand will undergo some major improvements partially funded by an additional $100 million that Tishman will dole out to Macy's over the next three years. Portions of the building will be reconstructed to level floor elevations, new elevators and escalators will be installed throughout, and the store's interior will be completely remodeled. The store will even get a ground-floor Starbucks along Fulton Street.
As for the parking garage across the street at 11 Hoyt Street, no plans for the site's redevelopment are in place just yet but the press release notes that it could give way to a future mixed-use development.
· Downtown Brooklyn will get new Macy's and mixed-use skyscraper in $270M deal [NYDN]
· Tishman Speyer Buys Part of Downtown Brooklyn Macy's Building for $170M [CO]
· Will the Downtown Brooklyn macy's Become a Glass Box? [Curbed]