Nov. 11--Macy's said it has "begun a process" to explore ideas, including joint ventures, to redevelop four flagship properties, including its State Street store in Chicago's Loop neighborhood.
The Cincinnati-based retailer made the announcement Wednesday when it released third-quarter financial results.
Other properties that it's considering redeveloping are in Manhattan, Minneapolis and San Francisco.
A possible sale of interests in some of the properties could be in the cards.
"Based on a successful collaboration on Macy's previously announced Brooklyn store redevelopment project, the company has engaged Tishman Speyer in an expanded relationship to advise the company's senior management team in identifying and advancing potential store redevelopment projects nationwide," Macy's said. "The company may request Tishman Speyer to participate in bidding for certain of these projects."
The redevelopment would be done in such a "manner that maintains a robust Macy's retail store presence while also bringing alternative use into those buildings," Macy's said.
The real estate review "could expand to include other assets, including mall-based properties," Macy's said.
Macy's said it would also continue to consider unloading certain real estate. Macy's recently sold "underutilized portions" of properties in Brooklyn and in downtown Seattle. It might also sell properties where "the value of real estate significantly outweighs the value of the retail business, such as the recent sale of Macy's stores in Cupertino and downtown Pittsburgh."
Macy's said it has no plans to form a real estate investment trust "at this time" but didn't rule one out in the future.
byerak@tribpub.com
