By Jon Peterson
Cincinnati-based Macy’s is now exploring opportunities to sell the 243,000 gross square foot I. Magnin portion of the main Union Square building in San Francisco, as stated by the retailer in its fourth quarter 2017 earnings results report.
The former I. Magnin flagship building is located at the corner of Stockton and Geary Streets. The building is a separate structure, which would be well suited for development, according to Macy’s. The plan is to complete the sale of this asset sometime this year.
The potential sale would represent the second sale of assets held by Macy’s on Union Square. Last February, Macy’s sold the 248,000 square foot men’s store at Union Square for $250 million, or just over $1,000 per square foot. This property is located at 120 Stockton Street and covers a half block at the northwest corner of Stockton and O’Farrell Streets.
The buyer was New York City-based Morgan Stanley Real Estate, and the property was acquired along with Los Angeles-based partner Blatteis & Schnur. The plan for this project is to create a mixed-use retail driven destination with a potential opening of the new space planned for 2021.
Macy’s is planning to make additional enhancements to the main Union Square building through the conversion of street-level retail space into high-end shops that will be leased to smaller vendors and third-party retailers. The Union Square main building will remain the largest department store in the Bay Area and will comprise approximately 700,000 gross square feet.