March 27, 2024
Are Any of the Nontraded REITs Landlords for Macy’s?
It is obvious after these searches that the closures of underperforming Macy’s stores will not affect any of the nontraded REITs directly, and it is doubtful that those closures will even affect nontraded REIT portfolio values indirectly.  

James Sprow | Blue Vault

Macy’s recently announced that they will be closing 150 stores by 2026. We looked at the properties owned by nontraded REITs to see if Macy’s plans will affect any of those retail properties. We have data covering the properties owned by nontraded REITs, specifically the properties owned by nontraded REITs that are classified as “Shopping Center” or “Single Tenant.” Our database lists no fewer than 754 properties owned by public nontraded REITs and one private nontraded REIT (ExchangeRight’s Income Fund). Shopping center properties in our data totaled 90 individual properties and single tenant properties totaled 664. None of the single tenant properties list Macy’s as a tenant. We next used Google Earth to look at all of the shopping centers in the database for nontraded REIT properties. None of the shopping centers in the database were enclosed. Macy’s stores are usually anchor tenants in large enclosed shopping centers and in our searches we did not find any enclosed centers with anchor tenants like Macy’s. In many cases the “anchor” tenants were supermarkets like Publix and Sprouts, unenclosed with parking in front of the stores. 

Searching news announcements for Macy’s store closures, none of the sites listed were in cities where nontraded REITs owned properties. It is obvious after these searches that the closures of underperforming Macy’s stores will not affect any of the nontraded REITs directly, and it is doubtful that those closures will even affect nontraded REIT portfolio values indirectly.  

Among the 664 single tenant properties in nontraded REIT portfolios as of September 30, 2023, the following tenants are the most numerous: 

Counts of Single Tenant Stores

Sources:  Blue Vault Database; Google Earth 

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