The 1.8 million-square-foot former Macy’s Plaza, now known as The Bloc, in the heart of the Los Angeles financial district is up for sale at a seemingly steep discount. The complex is located at 700 West 7th Street. It is the largest single mixed-use center in Los Angeles and will be sold in parts.
A report in the Los Angeles Times says that brokerage firm Cushman & Wakefield is marketing the lion’s share of the complex, which consists of 435,000 square feet of retail and entertainment space, and 730,000 square feet of office space across 33 stories. It also includes a parking deck for up to 1,895 cars.
The report states that while a price has not been set, it is expected that this portion of the complex will be sold for approximately $160 million.
The hospitality portion of the complex, a 496-room Sheraton Grand Hotel, will also be sold, but the name of the firm marketing it has not been disclosed.
Plans for a 41-story residential tower atop the existing 12-story parking deck were approved in 2025, according to a report in Urbanize LA.
In many ways, the proposed sale of The Bloc reflects the tumultuous reality of the office and retail market in Los Angeles. When the complex opened in 1973, it opened as an indoor mall anchored by a Broadway department store that was relocated from its longtime home at the corner of 4th Street and Broadway. An archive in the Pacific Coast Architecture Database states that Ogden Developer invested $85 million towards the project, which included a 250,000-square-foot Broadway department store, a two-story shopping mall and eight levels of parking.
Broadway Plaza, as it was known then, included a Hyatt Regency hotel and the office building at 700 Flower Street.
Department store Macy’s took over the Broadway anchor pad at the complex shortly after Broadway Stores, Inc., the parent company of Broadway department stores, was acquired by Federated Department Stores, Macy’s parent company, in 1995.
The complex was renamed Macy’s Plaza in 2005, when Los Angeles-based real estate firm Jamison Properties acquired it. The Hyatt Regency then became the Sheraton Hotel.
Jamison Properties sold the complex to a joint venture by Washington D.C.-based real estate firm National Real Estate Advisors, Alhambra-based The Ratkovich Company and Chicago-based Blue Vista Capital Management in 2013. The new owners took on a $180 million renovation of the complex that year, and turned the complex into an open-air retail center two years later. Another $75 million was invested to redesign the Sheraton hotel in 2015.
The report in the LA Times says that unexpected construction issues inflated costs from the $180 million budget to over $250 million, and that Ratkovich sold its interest in the property to NREA in 2018.
Macy’s closed for good at The Bloc in 2025, as part of a broader strategic reorganization from its parent company. Another 65 stores were also closed that year, according to a report in TheEastsiderLA.com.
Office occupancy in downtown LA has remained tepid since the COVID pandemic and has driven down valuations for the office portion of the complex, according to the report in the LA Times. Marketing materials from brokerage firm CBRE state that there are 101,044 square feet of office space available at the complex.
