“The Factory is fortunate to have substantially sized floorplates with phenomenal light and air to accommodate the ever-growing TAMI companies that are hiring millennials and focused on wellness and quality of life,” says Brian Waterman, vice chairman at Newmark Grubb Knight Frank. “The urban chic space, combined with reasonable rates and convenient proximity to Manhattan made the Factory a logical decision for Macy's.”

Waterman, along with NGKF colleagues Howard Kesseler, Jordan Gosin and Brett Bedevian, represented the Factory's ownership. A CBRE team of Scott Gottlieb, Michael Laginestra, Michael Wellen and Ken Meyerson negotiated on behalf of Macy's.

Back in Brooklyn, Macy's and Tishman Speyer have signed a purchase and sale agreement that will allow Macy's to continue owning and operating the first four floors and lower level of its nine-story Downtown Brooklyn store on Fulton Street. Tishman Speyer will purchase the portion of the site that Macy's will not retain, which it will develop into approximately 10 floors of office space intended to appeal to a wide range of tenants.

In addition, Tishman Speyer has agreed to purchase Macy's Hoyt Street parking facility, which could be used for a future mixed-use development. Macy's will receive $170 million in cash along with an additional $100 million over the next three years that will go toward renovation of the Brooklyn Macy's store.

“In recent years, it has become clear that our Fulton Street store requires major improvements in order to serve the Brooklyn of today, as well as future generations of customers,” says Macy's chairman and CEO Terry Lundgren. “We invested the time and resources necessary to fully study and understand the opportunity for making a major positive impact on Brooklyn and selecting the most capable partner in the project. We are now moving forward with a bold and exciting project with Tishman Speyer, one of the world's most experienced and visionary developers.” The owner/developer's co-CEOs, Jerry Speyer and Rob Speyer, say that the partnership will produce “a transformative mixed-use development in one of the nation's foremost destinations for today's creative workers and new economy companies.”

The Macy's space within the Fulton Street location will be reconfigured from 378,000 square feet of selling space on eight floors to 310,000 square feet on five floors, and the store will be completely remodeled. Work on both the retail and office portions of the Fulton Street property is expected to begin next spring, with a fall 2018 completion targeted for the entire project.