Macy's @ Railway Exchange Building
Bruce Development Co. and developer Rick Yackey closed yesterday on the Railway Exchange building at Seventh and Olive streets. The building is going to receive a $112 million rehab to the office floors of the largely vacant, 21-story structure. With projects already underway in the MX District, nearly $400-million dollars in construction will take place.
Macy's will shrink its store to the building's three lower floors from seven floors.
After Macy's bought May Company the building lost 850 employees. The building, part of the newly branded
Mercantile Exchange (MX) area of downtown St. Louis may offer more retail inside as well as office space.
Company executives are mum on the remodeling's details.
Macy's @ Railway Exchange Building
Links:
Bruce, Yackey Seek TIF for Macy’s Overhaul [2009-11-09]
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From yesterday's St. Louis Post-Dispatch
Sale of Railway Exchange Building closes
BY TIM BRYANT > tbryant@post-dispatch.com > 314-340-8206 | Posted: Thursday, August 19, 2010 5:56 pm |
Look for the reconfiguration to begin early next year on Macy's in downtown St. Louis.
That's the word this afternoon from Cincinnati-based Macy's in annoucing it has sold the Railway Exchange Building to local developers Rick Yackey and Bruce Development Co.
The long-anticipated sale of the Railway Exchange Building downtown was completed today, opening the way for its redeveloment, including renovation of the Macy's store.
Bruce Development and Yackey reached agreement in October to buy the building for $18.5 million. After several tentative closing dates passed, the deal was finally done today, officials said.
"We are thrilled that the Railway Exchange building has been sold to a local group that has the best interest of the building and the city at heart," said Barbara Geisman, the city's deputy mayor for development.
As previously disclosed, Macy's plans to shrink the downtown store to three from seven floors. Jim Sluzewski, a spokesman for Macy's, said that planning the job will begin now, with renovation to begin early next year.
The $112 million Railway Exchange project is in line for public assistance. The city has approved up to $27.8 million in tax-increment financing, plus money from a community improvement district and a transportation development district. The redevelopment area is comprised mainly of the 21-story Railway Exchange and the parking garage across Olive Street from Macy's.
Proceeds from the sale of federal New Markets Tax Credits also will go into the project.
Macy's plans to lease three floors of store space, plus office space on two upper floors. The building had been losing tenants for years. The closing in 2008 of Macy's Midwest headquarters cost 850 jobs and left the building largely vacant.
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