(For more retail coverage, click GlobeSt.com/RETAIL.)

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.