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California  + Bay Area  + Retail  | 

Macy’s, TMG to Explore Future Use of Flagship San Francisco Store

Macy’s, Inc. has reached an agreement to form a venture with TMG Partners, one of the Bay Area’s leading real estate firms, to explore the future potential of its historic Union Square property in San Francisco. The retailer said this effort is part of its ongoing strategy to evaluate compelling options for its real estate portfolio.

TMG Partners will work with Macy’s in conducting a strategic assessment of the property, to include exploring adaptive reuse and potential enhancements. CEO Michael Covarrubias of TMG told the San Francisco Business Times that no uses for the property have been ruled out, including a full conversion to housing.

The agreement with TMG follows the company’s 2024 announcement that it would close the Union Square site as one of 150 underperforming stores, and would seek a buyer. To date, a suitable buyer hasn’t been found.

While the partnership between Macy’s and TMG Partners is in the early stages, the company’s flagship store remains open. Further updates on potential plans and next steps for the Union Square site will be shared in the coming months.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
  • ◦Development
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