Macy’s Value Is All About Real Estate in Potential Take-Private

The potential acquirers of Macy’s Inc. probably aren’t interested in trying to arrest the storied department-store operator’s decades-long decline. Instead, analysts say the investors are likely eager to buy its real estate assets and potentially spin off its higher-end Bloomingdale’s and Bluemercury chains.

“There’s way easier places to make money than buying a midtier department store,” said Joel Bines, the former head of Alix Partners’ global retail practice who now advises retail companies’ boards. “Why would you want the brain damage of trying to make money in this space?”

Arkhouse Management and Brigade Capital Management have offered $21 a ...