Macy’s Inc, under pressure from activist investors to spin off its prized real estate assets, said it sold four floors of its downtown Seattle store to private investment firm Starwood Capital Group for $65 million.
The company, which said the space was “underutilized” and it is trying to make the 300 Pine Street store easier to navigate, expects to record a gain of about $60 million from the deal in the third quarter.
Starboard Value LP said in July Macy’s should spin off its real estate assets.
The top four floors being sold take up 300,000 square feet and are being converted for office use, Macy’s said.
Macy’s selling space at the store comes down to 283,000 square feet on five floors from 363,000 square feet on seven.
The company said the 265 employees at the store would retain their jobs but could be reassigned to different departments.
Macy’s said in August it was also selling part of its nine-storey Fulton Street store in Brooklyn to real estate company Tishman Speyer for $170 million. Macy’s will continue to own and operate four floors.