Saks Fifth Avenue owner developing luxury hotel, apartments in former department stores

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Saks Fifth Avenue owner developing luxury hotel, apartments in former department stores
Luxury HotelsLuxury Real EstateRetail
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Today's Business Headlines: 8/9/24

Saks Fifth Avenue is contemplating extending its brand to hotels and luxury apartments as it looks beyond a bleak retail landscape for growth, The Post has learned., HBC is developing a hotel and 56 private residences in Beverly Hills and posh townhomes in Westfield, N.J. in the parking lot of a long-shuttered Lord & Taylor department store.

“We believe our customers will live in the apartments and will want hotel services and be members of the club and spa.”HBC announced the project two years ago, but its plans are taking shape and providing the playbook for future projects, top brass said. The Neiman Marcus brand could be plastered on hotels and restaurants as well, Baker said. Together, Saks and Neimans have a real estate portfolio worth $7 billion, according to a press release announcing their merger, which is pending approval.The former Saks women’s store on Wilshire Blvd. remains empty as the plans to build a hotel there take shape.in 2019, but kept the real estate.

Finding new uses for these big box spaces is not easy and it can take years to redevelop them, real estate experts say.“It’s the physical configuration of these boxes that makes it challenging,” a real estate expert said who has worked with some of the largest retailers on unloading their underperforming stores. “It’s very expensive to take one of those buildings and break it up.”

In Westfield, N.J., the town approved a plan for HBC to redevelop 14 acres on both sides of the train station in the Union County township. The site includes a defunct Lord & Taylor store and multiple parking lots that will be converted into public spaces and townhomes or so-called mid-rise apartment buildings.

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