Continuing the discussion from NEW YORK | Flatbush Ave Corridor (DoBro + BAM + AY):
So begins the description of an unusual, quietly-held and — insiders say — extremely valuable stake the Chera family’s Crown Acquisitions owns in the Macy’s garage at 11 Hoyt Street, between Fulton and Livingston streets. The parking facility sits across Hoyt from the Macy’s flagship Brooklyn department store at 422 Fulton Street.
Last month, the Cincinnati-based retailer announced it was offering to sell 422 Fulton Street, its department store building with 759,800 square feet of development rights. News reports said firms such as Thor Equities and Vornado Realty Trust were eying the parcel.
Yet the Macy’s offering is actually larger and more complicated than previously disclosed, The Real Deal has learned.
A CBRE investment sales team led by Vice Chairmen Darcy Stacom and William Shanahan is marketing not one, but two Macy’s buildings. In addition to the department store, Macy’s is offering its massive garage at 11 Hoyt Street. That five-story structure has 584,000 square feet of development rights.
The department store is asking for proposals from developers that would include building a new 300,000 square foot Macy’s (or rehabilitating the old one) and a 25,000-square-foot Bloomingdale’s Outlet store, that would also have frontage on Fulton Street, insiders said.
A spokesperson for Macy’s would not comment on any development projects for the sites.
All told — and with the retail removed — a builder would have about 1 million square feet of residential development rights to construct and sell or rent, sources said. While prices for land have surged over the past year with some sites selling for more than $300 per square foot, for example a 45,280-square-foot site at 206 Kent Avenue in Williamsburg for $18 million, larger parcels typically sell for much lower prices per foot.
Timothy King, Managing Partner of CPEX Real Estate, said that with the ongoing building boom in Downtown Brooklyn, a large parcel like the Macy’s residential development rights would likely sell for up to $160 per square foot. That would equate to about $160 million.
But a sale of the two properties could prove to be a complicated affair. While the Macy’s department store parcel at 422 Fulton is owned in a straightforward manner, insiders said, a review of city records shows a different story at the garage parcel.