BOSTON-New Jersey-based real estate developer Vornado Realty Trust has reached an agreement with Federated Department Stores to buy Filene's flagship store in Downtown Crossing for about $100 million and plans to redevelop and expand the 656,000-sf landmark into a retail and office complex.

The transaction, which is expected to be completed by the end of the year, is one of about 80 store sell-offs planned by Federated following the Cincinnati-based firm's $11-billion takeover of the May Department Store Co. last year. With the recent Vornado agreement, the company now has buyers for 57 of those locations. The company said the sale of all 80 properties should bring in $400 to $500 million after taxes.

Federated executives say in a statement that the company will continue to operate a clearance center on the first floor of the downtown Filene's through the summer. A two-level Filene's Basement, which is owned by another company, Retail Ventures Inc., and was not part of the Vornado deal, will remain open, at least temporarily.

The Filene's building is part of a square block chunk of Washington Street that was granted historic status earlier this summer by the Boston Landmarks Commission. The designation requires the structure, which is listed on the National Registry of Historic Places, to be preserved. Two adjacent buildings constructed in the 1950s and 1970s behind the original store will likely be demolished, however. A fourth building, built in 1905 at the corner of Franklin and Hawley streets was also granted landmark status.

The landmark designation will require Vornado to retain the building's exterior and add another level of oversight to the permitting process as the company moves forward with its redevelopment plans. The Paramus, NJ firm, which owns Chicago's Merchandise Mart in addition to office towers and shopping centers around the nation, could not be reached by GlobeSt.com for comment.