Scheduled to open in 2019, AMC Theaters and Whole Foods will anchor the downtown district.
SUNNYVALE, CA—Macy's is closing its downtown Sunnyvale store and exercising its lease termination right. This closure is part of a series of planned previously announced lease terminations. Plans call for the store to begin its going-out-of-business sale in January and to close by April 9 or earlier if all inventory is sold before that date.
“We appreciate the many years that Macy's has served our community and wish them the best,” says Sunnyvale mayor Larry Klein. “We're currently exploring options for the Macy's site and will continue to focus on realizing the full vision of Sunnyvale's downtown that best supports our residents and more than 150 active downtown businesses.”
The 177,000-square-foot Macy's building was acquired from Sand Hill Properties in March 2018 by STC Venture LLC, a joint venture between affiliates of Hunter Storm and Sares Regis Group of Northern California. CityLine Sunnyvale was acquired by STC Venture LLC in late 2015.
STC Venture LLC is developing CityLine Sunnyvale, a master-planned pedestrian-oriented mixed-use district that will feature new residences, shopping, entertainment options and office space planned across 36 acres.
“Macy's was a valuable tenant to us and a central part of downtown Sunnyvale for many years,” says David N.P. Hopkins, chief operating officer at Sares Regis Group. “We look forward to continuing the completion of downtown and we're currently working to develop a well-coordinated coherent plan for the Macy's site that will build upon Murphy Avenue with new walkable retail. We're confident that it will provide a wonderful active environment for current and future business owners, residents and office tenants alike.”
Some $20 million in public improvements are currently under construction for CityLine Sunnyvale, including the addition of landscaping and street trees, the installation of new traffic signals, and the construction of landscaped medians.
“Sunnyvale residents can be assured that this site will be developed into a retail-oriented space that will serve the downtown area,” Hopkins tells GlobeSt.com. “This is a central and important piece of property to downtown Sunnyvale, and it will be given a plan that the community deserves.”
Elsewhere in downtown Sunnyvale, leasing has begun on The Flats, a 198-residence development located in three buildings along Washington and McKinley avenues. The Flats offers the first completed homes within the CityLine Sunnyvale project, including 25 residences designated as affordable.
Construction has also begun on a two-story building on the corner of Murphy and McKinley avenues that will house a Whole Foods Market and an AMC Theaters. Scheduled to open in 2019, the 52,000-square-foot theater and 52,000-square-foot grocery store will anchor the downtown district and help attract additional retail and restaurant tenants to the area.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
