United Properties, one of the largest developers in the Twin Cities, is taking a stake in the just-sold Macy’s complex in downtown Minneapolis and also taking the lead in redeveloping the site.
A day after Macy’s Inc. announced the completion of the $59 million sale, new owner 601W Cos. revealed the deal with United Properties and announced other firms that will determine the future of the site in the heart of downtown.
“We are very pleased to be working on this important mixed-use development in downtown Minneapolis,” Bill Katter, president and chief investment officer at United Properties, said in a statement. “Together, this highly qualified, veteran partnership will ensure the redevelopment not only serves, but also enhances the downtown community.”
The Macy’s property spans three buildings and takes up about 1 million square feet of space on a block of Nicollet Mall. New York-based 601W Cos., which has a history of reimagining skyscrapers, routinely enlists local partners in its projects.
With United Properties as the main developer, 601W said it hired Gensler as the lead architect, the Telos Group as its redevelopment consultant and office marketer and Transwestern as management agent.
After the Macy’s store closes later this month, the property is planned to be redeveloped into retail and office space.
Developers are likely to try to obtain historic tax credits for the project, said Grant Uhlir, a principal with Gensler in Chicago.
“We are not simply redeveloping a building,” Brian Whiting, president of the Telos Group, said in a statement. “We are providing unique and progressive environments that draw on the building’s history and combine it with the diverse experiences Minneapolis has to offer.”
United Properties currently has several redevelopments it is working on in Minneapolis. It’s highest-profile project at the moment is a 40-story hotel and residential tower planned for the Nicollet Hotel Block on the north end of Nicollet Mall. The company has had trouble securing financing for it, however. A spokeswoman recently said United Properties is reviewing “several alternative development scenarios” for the block and working with the city to extend its control of the site through the summer.