Macy’s sells downtown Minneapolis property to 601W Companies

By

Obi Anyanwu

Published
Mar 1, 2017

Macy’s announced on Wednesday that it has completed the sale of its downtown Minneapolis property to 601W Companies for $59 million in cash. The agreement to sell the property was signed on January 4, 2017, and the final clearance sale began on January 9, 2017. The store will officially close in spring 2017.

 
601W Companies plans to change the 700 Nicollet Mall property into a mixed-use building. The company will maintain much of the building’s heritage, such as the Dayton-Hudson archive display, which will be moved and displayed in the Southdale store. Macy’s also donated archival items to the Minnesota Historical Society, including props, floor plans and displays for iconic events.
 
“Macy’s – and originally Dayton’s – has served the downtown Minneapolis community at this location since 1902, and we deeply appreciate the relationships we have built with generations of Minnesotans, including our customers, associates, community leaders and elected officials,” said Jeff Kantor, Macy’s chief stores officer. “While we will not operate a downtown store going forward, Macy’s remains committed to our customers and associates at eight other stores in the Twin Cities, including six department stores and two furniture galleries, as well as on macys.com.”

Macy’s acquired the property in 2005 with the acquisition of the May Department Stores. The original location opened as a Dayton’s store in 1902 and was expanded several times until 1945. The store was renamed as Marshall Field’s in 2001, and was acquired by the May Department Stores in 2004.
 
The retailer cut over 10,000 jobs at the beginning of the year, following a dismal holiday season. Reuters reported in January that Macy’s will close 68 stores by mid-2017 as part of its plan to close 100 stores. The store closures boosted the retailer’s profits in the fourth quarter.
 
Following the sale to 601W Companies, Macy’s will record a gain of $47 million in the first quarter of 2017.