The Macy's building on in downtown Minneapolis has been sold for $59 million.
The retailer confirmed Wednesday morning that the landmark property at 700 Nicollet Mall has been bought by 601W Companies, a New York real estate investment firm, that is planning a "major mixed-use redevelopment" for the building.
The Macy's store will close down probably by the end of March, and it has confirmed this will mean 280 employees will lose their jobs, though some may be offered positions in other nearby stores "where possible."
"Eligible full-time and part-time store associates who are impacted by the store closing will be offered severance benefits if positions are not available in other locations," it said.
The retailer said another 90 of its employees who work in district offices on the upper floors of the Nicollet Mall building will be relocated to other Macy's stores in the Twin Cities area.
It will leave Macy's with 1,500 employees in the Twin Cities metro.
601W Companies is expected to invest "substantial capital to repurpose the building," according to Macy's chief stores officer Jeff Kantor, and its vision will include "creative office space" on the upper floors of the building and retail spaces on the street and skywalk levels.
"We believe this will be an outstanding addition to the downtown Minneapolis community in the heart of the city," Kantor said.
Macy's struck an agreement with 601W Companies on January 4.
The historic location opened as a Dayton's store in 1902 and expanded several times until 1945. It was renamed as Marshall Field's in 2001, before it was changed to Macy's in September 2006.