Macy’s Miami Beach hits the market

The Miami Beach property leased to Macy’s is for sale, and the owners expect it to trade for more than $20 million. Macy’s still has about 32 years left on its lease, and the planned sale is another indication of the once vaunted retailer’s escalating woes.

The 50,000-square-foot lot at 1675 Meridian Avenue is zoned CD-3, meaning it can be developed into 137,000 square feet, and up to 75 feet tall. A call for offers is set for the end of February.

The property, about two blocks away from the Miami Beach Convention Center and a block from Lincoln Road, could be developed into a hotel. The $600 million renovation and expansion of the convention center is expected to be completed this year.

With 98,610 square feet, the Macy’s building is the largest space available and one of the only ones suitable for a national “big box” store. When the leasehold was quietly being marketed for sale two years ago, sources said Nordstrom Rack and Old Navy had eyed the space. The leasehold was expected to fetch at least $80 million.

The building was built in 1953 and was the former home of Burdines. In 1956, Burdines merged with Federated Department Stores, which also owned Macy’s, Bloomingdale’s and other stores. By 2005, Federated brought all its Burdines stores under the Macy’s brand. .

A contender for the site could be Stephen Bittel’s Terranova Corp., which owns surrounding retail properties. Bittel redeveloped the site next door into a new retail building anchored by Marshalls, and the property across the street into the new Anthropologie. He also sold the office buildings at 1674 and 1688 Meridian avenues in 2016 for $49 million.

Article Source The Real Deal