For more than a century there has been a retail store at 400 Fifth Avenue, Downtown. During the bulk of that history it was Kaufmann’s, and people met under its iconic clock for lunch or shopping dates—even after the Federated Department Sores bought it and reopened it as Macy’s in 2006.
While the clock may remain, there will be no more department store shopping at the location as Macy’s announced July 13 it had sold the building to Philadelphia-based CORE Realty, which plans a $40-million, mixed-use redevelopment of the 1.2-million-square-foot building and adjacent annex.
“This is a sad day for Pittsburgh,” said Pittsburgh Mayor Bill Peduto in a statement. “While I wish we would have had the opportunity to save the store, I care most about the employees who have dedicated themselves to this store over many decades, and have made it their life’s work. I am grateful that Macy’s is offering new job possibilities to its longtime employees.”
Allegheny County Executive Rich Fitzgerald also thanked the retailer for not abandoning its employees.
“I, like so many other Pittsburghers, have fond memories of the downtown location, and am sad to hear today’s announcement. I was glad to hear from Macy’s leadership that opportunities are being made available to longtime employees, and that the new developer is aware of the location’s icons that we all hold dear and will be preserving those—including the iconic Kaufmann’s clock,” his statement read.
Macy’s, which had twice previously reduced the space it was using in the massive building to about 240,000 square-feet, had been negotiating since last year to sell CORE all but the first four floors of the structure. But in its July 13 announcement, Chief Stores Officer Jeff Kantor said they decided selling the whole building was the best option:
“For the past four years, Macy’s has been investigating the best possible use for this property, especially given the large amount of unproductive and unused space on the upper floors…In late 2014, we began working with CORE Realty, which had an exciting vision for residential, hotel and parking on the upper floors and annex. More recently we decided to make the entire building available to CORE so it could evolve its plan into a more holistic project,” Kantor said.
As for the 170 Downtown employees who will be affected, Kantor said associates would be offered positions in nearby stores where possible. Eligible associates laid off due to the closing will receive severance packages. About 30 associates working in district offices on the 11th floor would be relocated to other area stores.
The plan CORE submitted to the Pittsburgh Planning Commission in May calls for cutting two Atria into the center of the building, from the roof to the seventh floor, to let in natural light for the innermost of 311 planned high-end apartments. It would also include amenities such as a rooftop pool, a restaurant and tennis courts. Rents for the studio, one- and two-bedroom units were projected at $1,000 to $2,000 per month.
The plan also includes refiguring the basement to allow for parking 246 cars and 290 bicycles; it may also include a hotel. It remains to be seen how CORE will modify its plans to make use of the bottom four floors.
Macy’s final clearance sale at the Downtown store will begin Monday, July 20 and is expected to run until September.
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