Macy's has agreed to take over 400,000 square feet of the old Campbell's Soup plant on Franklin Boulevard in Sacramento. Macy's will use the space for a new distribution center and will hire 100 full-time employees.
Hackman Capital Partners owns and operates the facility. The company's Nate Ellis says Macy's will use the distribution center to move merchandise to western states.
"This piece of property located in south-side Sacramento close to the freeway system is actually a really good location for doing distribution. I think that was a big factor for them. And, we were pretty aggressive in offering them lease rates and things of that nature to entice them to come here."
The Sacramento County Office of Economic Development says it negotiated an incentive program based on job creation to lure Macy's to Sacramento.
Ellis says Macy's will invest $10.5 million in improvements at the old soup plant, which is now called the Capital Commerce Center.
Hackman Capital Partners may match that amount.
Macy's will take over the northern section of the million-square-foot complex.
Ellis says -with the Macy's lease- the Capital Commerce Center is now 70-percent occupied.
Hackman Capital Partners has room on the property to add another million square feet of leasable space.
Macy's is expected to begin operations in July.