In a deal that could have implications for the future of Downtown Miami’s anchor retail tenant, a New York real estate investment firm paid $15.5 million to acquire about 60 percent of the property that now houses Macy’s Flagler Street store.
The acquisition by Aetna Realty Group includes the 48,000-square-feet of land that was first leased to R.W. Burdine back in 1917 for the Burdines store. The property was currently owned by 23 heirs of Richard and Harriet Ashby, who signed the initial 99-year lease with Burdine.
The sale was motivated by the impending expiration of that lease in 2016, said Lewis R. Cohen, a shareholder at GrayRobinson, who represented the Ashby family in the transaction that closed on New Year’s Eve.
Over the years, Macy’s has grown the downtown store well beyond the Ashby portion. Aetna has also made a commitment to purchase the remaining portion of the building that is currently owned by Macys, Cohen said. But that deal hasn’t closed yet.
“That deal is a sure thing,” Cohen said. “They could not have closed with us without having an agreement with Macy’s completely nailed down.”
Macy’s spokesman Jim Sluzewski said this transaction doesn’t impact Macy’s lease and he declined to comment on any other pending transaction regarding the property the retailer owns in Downtown Miami.
“It’s business as usual,” said Sluzewski, who would not discuss Macy’s long-term plans for Downtown Miami beyond the expiration of its lease.
But Cohen said Macy’s is in the process of finalizing a short-term deal with the new owners.
“They intend to stay for at least the foreseeable future,” Cohen said. “For a minimum of five years they’ll be there and possibly longer.”
Macy’s long-term future on Flagler Street has been in doubt since 2007, when then Macy’s Florida chairman took city leaders to task for the deplorable conditions downtown and threatened that the retailer might leave.
Portion of Macy’s Flagler Street property sold
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Portion of Macy’s Flagler Street property sold
