The Wall Street Journal is reporting that an unidentified buyer has signed a contract to purchase the Railway Exchange Building from Macy's Inc. for $35 million in a deal that is expected to close within six months.
Macy's will keep its department store open on the lower floors, leasing the space from the building's new owners.
The 21-story, 1,162,000 sf building currently has a vacancy rate of approximately 20 percent, the Journal reports. That number is lower than I would have thought. As for the Railway Exchange's redevelopment potential:
The building likely will be redeveloped as a mixed-used structure that could include a hotel, offices and residential space as well as retail, people said. Just what makes sense likely will depend on which real-estate sector emerges first from the downturn.It will be interesting to see what the new owners have in store...
Update from Building Blocks: Link