Tishman Speyer Lands $194M Construction Loan for DoBro Macy’s Reno

reprints


There’s a lot of activity buzzing around the Downtown Brooklyn Macy’s. And no, we’re not just talking about end-of-the-year clearance sales.

SEE ALSO: Under Construction: How Tishman Speyer Is Building an Office Tower Over Macy’s in BK

Bank of the Ozarks provided Tishman Speyer with $194 million in construction debt for the redevelopment of the Macy’s-anchored 422 Fulton Street, according to records filed with the city today.

In summer 2015, the department store had agreed to sell off a portion of the 9-story property to Tishman Speyer for $170 million, amid waning sales performance, as Commercial Observer reported at the time.

Tishman will create 10 floors of Class A office space, starting with the fifth floor of the building.

The developer will also pay an additional $100 million to renovate the Macy’s portion of the property between Gallatin Place and Hoyt Street, which will include replacing ground-floor windows and raising the ground floor’s ceiling height.

Macy’s will remain open during the renovations, which are slated for completion in 2018, and its retail space will be reduced by 68,000 square feet to 310,00 square feet through the basement to fourth floors.

A spokesman for Tishman did not immediately respond to a request for comment, and a representative for Bank of the Ozarks declined to comment.