NEW YORK | Macy's Tower | FLOORS | 870 FT

[NYguy]

Originally Posted by MAC123

Where did the 870 ft in the title come from?

I wouldn't take it to be final.

[MAC123]

Hmm interesting. I'd prefer it to be bumped up to at least 900'

But really my main concern right now is it actually getting built. I hope so.

[NYguy]

We won’t really get an idea for sure until they start the approvals process.

Whatever the case, I hope the tower won’t be as bulky as what we’ve seen.

[NYguy]

https://www.bloomberg.com/news/artic...e-private-deal

In Potential Deal to Take Macy’s Private, It’s All About the Real Estate


By Jeannette Neumann
December 11, 2023

The potential acquirers of Macy’s Inc. probably aren’t interested in trying to arrest the storied department-store operator’s decades-long decline. Instead, analysts say the investors are likely eager to buy its real estate assets and potentially spin off its higher-end Bloomingdale’s and Bluemercury chains.

“There’s way easier places to make money than buying a midtier department store,” said Joel Bines, the former head of Alix Partners’ global retail practice who now advises retail companies’ boards. “Why would you want the brain damage of trying to make money in this space?”

Arkhouse Management and Brigade Capital Management have offered $21 a share to take the department store operator private, Bloomberg News has reported, citing people with knowledge of the matter. The potential buyers are likely interested in selling at least some of Macy’s real estate assets, Bines and other analysts said, as well as the upscale Bloomingdale’s, which has reported year-over-year sales declines that have been less steep than those at the mass-market Macy’s chain.

Bloomberg Intelligence analyst Mary Ross Gilbert estimates that Macy’s real estate assets in the US, including its flagship in Manhattan’s Herald Square, could be worth $8 billion. Arkhouse and Brigade Capital’s offer values Macy’s around $8.5 billion, including debt, which shows they might not assign much value to the retail holdings. She values the Herald Square store alone at $2 billion, noting that the valuation “might be low given a major development underway that includes a new office tower.”

Macy’s potential exit from some of its real estate holdings could be an outright sale of stores or a sale-and-leaseback plan, in which the buyers would structure the business so that Macy’s would rent the buildings it had previously owned.

https://finance.yahoo.com/video/why-...173021156.html

Why Macy's real estate portfolio is the focus in buyout


Nicholas Jacobino and Diane King Hall
Mon, Dec 11, 2023

A report from the Wall Street Journal revealed Macy's (M) is considering a buyout offer from real estate investor Arkhouse Management and asset manager Brigade Capital Management worth $5.8 billion. While brick and mortar retail stores have faced an uphill battle in recent years, at the center of interest for most investors is Macy's real estate portfolio, which contains the crown jewel, New York City's iconic Herald Square location. Triangle Capital Co-Founder and Partner Richard Kestenbaum joins Yahoo Finance to discuss the potential buyout and Macy's real estate portfolio.

[NYguy]

https://www.dailymail.co.uk/news/art...ut-target.html

How Macy's lucrative $8 billion real estate empire including $2b Manhattan flagship location 'with new office tower plans' made it the target of potential acquisition bid





By Alice Wright
12 Dec 2023

Macy's lucrative $8 billion real estate empire including $2b Manhattan flagship location has made it the target of a $5.8bn buyout bid, analysts suggest.

The investor group launching the bid has valued the iconic stores' shares at $21 as the legacy bricks and mortar retailer struggles against online competition.

The move suggests that much of the value of Macy's lies in its real estate, including its 1.25 million square foot Herald Square flagship store, which Bloomberg estimates could be worth $2 billion alone.

However, Bloomberg Intelligence analyst Mary Ross Gilbert insists that the lofty price could actually be a bit less than its true worth.

Gilbert said the estimate could be higher given a "major development underway that includes a new office tower.”

TD Cowen analyst Oliver Chen estimates that Herald Square accounts for about a fifth of the value of Macy's real-estate portfolio.

'When you look at the value of Macy's, the real estate is the jewel,' Neil Saunders, a managing director with research firm Global Data told the Journal.

[Zapatan]

Good news for Macy's but wonder what that means for the tower. Could they build a taller one?

[NYguy]

Originally Posted by Zapatan

Good news for Macy's but wonder what that means for the tower. Could they build a taller one?

They could build taller or shorter.

[DCReid]

Originally Posted by NYguy

They could build taller or shorter.

I wonder if they may switch to mixed use with a residential component.

[chris08876]

Hopefully this sees some movement in the next 2 years.

I think the biggest benefit from this from a public perspective is this sweet plaza!

Although I can imagine this will be pedestrian hell when its u/c. For those that know Herald Square, its a mad house. Second busiest intersection in the city, Times Square being first. And during the holidays, Rockefeller Center sometimes even eclipses Times Square in terms of pedestrian flow.

Although one would be suprised but Flushing Queens is also a mad house as well. Busy intersection there.

[NYguy]

Originally Posted by DCReid

I wonder if they may switch to mixed use with a residential component.

Hard to say. A lot of it depends on zoning, which they haven’t even begun the process of yet. But we know Vornado was given the option to build residential on top of the old Gimbel’s (Manhattan Mall) site.

Anyway, people may remember years ago, there was a department store in the NY area called Alexander’s. I remember it was the value if the real estate that helped that one close down. Fun fact - I was working at the flagship location on 59th Street when that all went down. (I think I may even have a bag somewhere in storage). But that site eventually became the Bloomberg Tower. When Vornado decided to actually build.

[Doubleu1117]

https://www.marketwatch.com/story/ma...lders-9635ef0f

Macy’s rejects $5.8 billion takeover bid, as Arkhouse threatens to take offer directly to shareholders

By Mike Murphy
21 Jan 2024
Market Watch

Macy’s Inc. said Sunday it has rejected an unsolicited bid by Arkhouse Management and Brigade Capital Management to take the department-store chain private in a $5.8 billion deal, citing concerns over financing.

In a statement, Macy’s M, 2.69% said Arkhouse and Brigade failed to address the board’s concerns over their ability to finance the deal, and found a “lack of compelling value in their non-binding proposal.”