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MG Partners and Prado Group are among potential buyers expressing strong interest in redeveloping Macy's 400,000-square-foot department store in San Francisco's Union Square. The store at 170 O'Farrell Street has been up for sale since February, with Eastdill Secured handling the listing. Macy's plans to close 150 underperforming stores nationwide and shift its focus towards luxury goods.

    The connected buildings could be repurposed as retail space, a hotel, or housing. City officials have expressed willingness to partner with developers and Macy's, pushing for the retailer to maintain a presence in the area. Emails obtained by the San Francisco Chronicle show city officials are open to offering incentives such as height exemptions, tax breaks, and development agreements.

    TMG Partners has invested in projects on both sides of the bay, including PG&E's Oakland headquarters. Prado Group is working to convert the former California Pacific Medical Center into housing. Macy's owns Bloomingdale's and Bluemercury, and could potentially move its San Francisco Bloomingdale's store into the Union Square flagship complex.