MINNEAPOLIS (KMSP) - Macy’s Inc. has sold its downtown Minneapolis store and will officially close later this year, the company announced Wednesday.
The retailer said it signed an agreement to sell the historic downtown building to New York-based 601 W Companies, who will redevelop the building into a mix of office and retail space.
At 1.2 million square feet and with 280 employees, the downtown Minneapolis store is the largest of the 68 stores that Macy’s is closing in 2017.
The department store first opened on Nicollet Avenue in the early 1900s as Dayton’s. It was rebranded as Marshall Fields in 2001 before changing to Macy’s in 2006.
Minneapolis Downtown Council President Steve Cramer said he was not surprised to hear the store would be closing and says its sale could be a new opportunity to “revitalize” the building.
“For many years, the former Dayton’s building has been an underutilized asset at the center of our business district, with hundreds of thousands of vacant square feet,” Cramer said in a statement. “With the sale of the building to an experienced, well-capitalized developer with urban retail experience – 601 W Companies – we have an opportunity to revitalize this iconic structure in the heart of downtown.”
Mayor Betsy Hodges, the Minneapolis Downtown Council and other city officials are expected to meet with the new owners sometime next week.
“Retail is changing dramatically in downtowns across America, and my expectation is that the new owners will bring in the kind of targeted, specialty retail that will be successful in our vibrant, safe, 24-hour downtown,” Hodges said in a statement.