New York real estate investor 601W Cos. paid $59 million for the downtown Minneapolis Macy’s building that it intends to redevelop.
Macy’s disclosed the sale price in a Wednesday press release announcing the close of the deal. The historic Nicollet Mall building totals 1 million square feet.
The sale price provides an explanation for why Macy’s decided to sell to 601W Cos. instead of City Center Realty Partners. San Fransisco-based City Center has filed a lawsuit against Macy’s, alleging that Macy’s pulled out of a $50 million offer at the 11th hour despite reassurances that it would sell to City Center.
That lawsuit is still pending and Macy’s hadn’t responded as of Wednesday.
601W Cos. has told city leaders it intends a mixed-use redevelopment of the building with office space on the top floors and retail on the street and skyway levels. Aside from that, the firm hasn’t provided specifics about what the building will look like when it’s done.
“We have talked with a wide variety of partners in pursuit of a plan that would create the most value for the company and the community, and are pleased that the new owner intends to invest substantial capital to repurpose the building,” Jeff Kantor, Macy’s chief stores officer, said in a press release.
City Center had planned to cut out the middle of the building to open up large floor plates to more natural light, according to sources who saw City Center’ conceptual plans but weren’t authorized to discuss them publicly.
Macy’s intends to close its store in late March, according to the press release.