Macy’s will close downtown Sunnyvale store within months, new retail will replace site

SUNNYVALE — Macy’s will soon close its store in downtown Sunnyvale amid an ongoing retail apocalypse for brick-and-mortar stores, but the property’s owners are already eyeing ways to fill the big site with new retailers, developers said Tuesday.

The 177,000-square-foot Macy’s building was bought in 2018 by a joint venture of developers Hunter Storm and Sares Regis Group of Northern California, which acquired it from Sand Hill Properties. The new owners anticipated that at some point the Macy’s store would close its doors.

The store site, located on West Washington Avenue between South Murphy Avenue and South Taaffe Street, will be redeveloped as part of the CityLine Sunnyvale project, an ambitious mixed-use development that bids to bring far-reaching changes to downtown Sunnyvale.

“We’re currently working to develop a well-coordinated, coherent plan for the Macy’s site that will build upon Murphy Avenue with new walkable retail,” said David Hopkins, chief operating officer with the Sares Regis Group, a residential developer.

AMC Theaters and Whole Foods are two notable early anchors for the new complex of retail, entertainment venues, homes and office spaces that are being planned for CityLine Sunnyvale.

“A wonderful, active environment for current and future business owners, residents, and office tenants alike” is what the developers envision for CityLine Sunnyvale as well as Macy’s site once the venerable retailer departs.

Some brick-and-mortar retailers have closed their doors or scaled back their locations because a growing number of consumers are shopping online. That has posed brutal challenges for retailers, especially department stores such as Macy’s. Sears, Walmart and Kmart have also struggled due to online retailing.

“We appreciate the many years that Macy’s has served our community and wish them the best,” Sunnyvale Mayor Larry Klein said.

The Macy’s property is deemed to be a crucial component in the CityLine Sunnyvale complex.

“We’re currently exploring options for the Macy’s site and will continue to focus on realizing the full vision of Sunnyvale’s downtown that best supports our residents and more than 150 active downtown businesses,” Klein said.

Macy’s has begun a closeout sale at the Sunnyvale store, which is expected to shut its doors by no later than this April.

The future Whole Foods and AMC Theaters complex at Murphy and McKinley Avenues will contain a 52,000-square-foot grocery store and a 52,000-square-foot theater. Both are expected to open in 2019.

The entire development contains 36 acres.

“We look forward to continuing the completion of downtown,” Hopkins said.

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