October 11, 2005

Treeline To Redevelop Portion of Brooklyn's Flagship Macy to Office

By Kristin Olson, Associate Editor

The Treeline Companies will extensively redevelop the unused portion of the Brooklyn, N.Y., Macy's department store into 100,000 square feet of rentable Class A office space. The company today completed the ground lease of 29 Gallatin Pl., where the unused portion of the Federated Department Stores' unit sits on the corner of Gallatin Place and Livingston Street. Federated will continue to own the building and the operating portion of Macy's will remain intact and undisturbed by the redevelopment.

Next April, Treeline will take possession of the nine-story brick building and begin a $20 million renovation, which includes physically separating the property from the operating Macy's as well as installing mechanical, electrical, elevator heating, wiring and HVAC systems.

"We do think that the type of office product that we are putting on the market is very desirable," said Treeline president Frances Schor. Treeline's office properties in Brooklyn are 100-percent occupied and Schor said she believes this office property will attain the same success. "We are producing product that people want."

Treeline has been involved in the real estate market in Brooklyn Heights and downtown Brooklyn for more than 20 years. Schor said her company sees the area as a good representation of what is best about New York.