The Silicon Valley Voice

Power To Your Voice

Development of Downtown Sunnyvale Will Move Forward Without Macy’s

Sunnyvale’s development of its downtown area continues to move forward, but it will be doing so without a major retailer. Macy’s told the City earlier this year that it will opt out of its lease and immediately started a going out of business sale. The Sunnyvale Macy’s location will close by April, or earlier if the inventory runs out.

“We appreciate the many years that Macy’s has served our community and wish them the best,” Sunnyvale Mayor Larry Klein told the Sunnyvale Downtown Association (SDA).

“The decision to close stores is always a difficult one,” a Macy’s representative told the SDA. “But Macy’s is delighted to have served the Sunnyvale community over the past 40 years, and we look forward to continuing to do so at nearby Macy’s stores.”


The Macy’s store was one of the first stores at the Sunnyvale Town Center when it opened in 1979. Until the retailer decided to opt out of its lease, it was loosely included in the plans to revitalize Downtown Sunnyvale as part of the CityLine Sunnyvale Development.

With Macy’s leaving, the developer STC Venture, LLC, says it has other plans for the 177,000 square foot site.

“We’re currently working to develop a well-coordinated, coherent plan for the Macy’s site that will build upon Murphy Avenue with new walkable retail,” David N.P. Hopkins, Chief Operating Officer for Sares Regis Group of Northern California (SRGNC) told the SDA. “We’re confident that it will provide a wonderful, active environment for current and future business owners, residents, and office tenants alike.”

CityLine Sunnyvale is a 36-acre mixed-use development project run by STC Venture, LLC. STC Venture, LLC is a joint venture between commercial developer Hunter Storm and SRGNC. The site is bordered by Mathilda Avenue to the west, Washington Avenue to the north, Sunnyvale Avenue to the east, and Iowa Avenue to the south.

Phase II of the development is currently in the permitting process and will include housing along Iowa Avenue. Phase I was initially proposed in 2007, but work did not start until late 2016 after the economy had begun rebounding from the 2008 recession.

Parts of Phase I are already complete, including a 198-unit apartment complex called The Flats that started leasing in October of last year. Crews also completed $20 million in public improvements to help reopen Redwood Square Plaza with new landscaping and parking.

Work continues on the construction of a two-story building where Murphy Avenue and McKinley Avenue meet. The building will be home to a Whole Foods Market and an AMC Theaters. Both are expected to open later this year.

Phase II of the project is expected to be completed in 2020, allowing for the start of Phase III. Phase III will include developing the area around the Macy’s site and possibly the site itself.

The City of Sunnyvale holds an update on the development on the first Wednesday of every month at 9:30 a.m. at the Sunnyvale City Center Management Office on Mathilda Place.


Leave a Comment

Your email address will not be published.


You may like