Macy’s recent sale of its downtown Brooklyn department store for $23 million illustrates the company’s lack of real estate savvy, possibly undervaluing its prime asset.
One source pointed out, 'Macy's would do that because they are not real estate investors. In my view, this is a story about a retailer who knows nothing about their most valuable asset.'
The sale price equated to just over $50 a square foot, vastly lower than the recent retail space market in downtown Brooklyn, which recently traded at around $250.
The current sale by Macy's starkly contrasts with previous deals, such as when they sold the upper floors for $270 million in 2015, highlighting a significant depreciation in asset value.
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