Miami Macy’s New Lease Could Change Future of Anchor Store

by Isaac Benmergui, Esq on January 3, 2013

Globe transparentPart of Macy’s downtown Miami store was recently sold to a New York firm that is also expected to purchase the remaining portion of the building. The acquisition could change the future of the anchor tenant in the downtown location.

Macy’s long history in Miami dates back to 1898

The New York real estate investment firm, Aetna Realty Group, paid $15.55 million to purchase more than half the property, in which the Macy’s Flagler Street store is located. Also included in the sale was 48,000 square feet of land. The land was leased to R.W. Burdine in 1917 and subsequently owned by 23 heirs of Richard and Harriet Ashby, who signed an initial 99-year lease with Burdine. The lease expires in 2016.

Four years ago, the Ashby family began to take steps to sell the property at the intersection of Miami Avenue and Flagler Street, and the deal was closed this past New Year’s Eve.

Macy’s and Burdines developed the site’s downtown presence beyond the original Ashby land, and at present the building now extends another 30,000 square feet of land. Aetna will soon purchase the remaining portion of the building that is currently owned by Macy’s.

Macy’s chose not to purchase the Ashby land itself, so the owners sought out a third-party that could control both properties. Improvements made to the store over the years straddled both properties, and would have required splitting the properties, which would have been an expensive undertaking.

At least five more years…

Macy’s roots in downtown Miami date back to 1898, when the first Burdines opened in a nearby downtown location. Macy’s is currently finalizing a short-term deal with the new owners to remain in the downtown location for at least the next five years and possibly more.

Getting Legal Help

The law offices of Isaac Benmergui represents commercial property acquisitions throughout the Greater Miami area and can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.comfor more information or to set up an appointment today.

 

 

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