More than 100 years of Neiman Marcus history appear to be ending due to a 25-foot-long plot of dirt sitting under the iconic downtown Dallas department store’s escalators. The company plans to shutter its flagship store at 1618 Main St. in Dallas on March 31, after failing to come to a lease extension with the part-owner of a piece of ground under the building.
The land dispute behind Neiman Marcus’ closure is complex. Real estate reporter Nick Wooten explains that Neiman Marcus owns most of the building, but a small portion of land under the southwest corner of the structure, measuring 25 feet by 100 feet, is owned by other parties. This small plot of land, which includes the area under the escalator, men’s grooming products, and Tom Ford cosmetics on the first floor, extending upward, is the reason for the closure.
Chris Walsh, president of Keating Properties LLC in Virginia, owns one of the plots of land under the Neiman Marcus building. He came to a lease extension in 2023 to keep Neiman at the property for decades. “They showed significant indication that they were working to stay,” he said.
The land under the Neiman Marcus building is carved up into several pieces, with different owners. This can lead to complications, as Paul Genender, co-chair of the Dallas office for law firm Paul Hastings and chair of the Texas Commercial Litigation practice, notes. “When you do have multiple landlords, then it can create a situation in which one landlord could potentially have blocking rights — if you can’t reach a global agreement on a renewal,” he said.
Slaughter Partners, a Dallas company, is one of the owners of the land under the building, according to state filings. Multiple messages left for leaders of the firm, their place of business, and family members were not returned.
Saks Global, which owns Neiman Marcus, received notice from a landlord to terminate the occupancy at the downtown store, forcing it to close the location, the company said in a statement this week. “From as early as 2011 and as recently as December 2024, there have been several attempts to come to a commercially reasonable agreement with this landlord,” the memo said. “All of these attempts have been rejected by the landlord who has now terminated our occupancy.”
The piece of land in question is co-owned by Slaughter Partners and another entity, CCS Commerce B LLC, an entity with an address in the Houston area, according to a state filing. However, Dallas County deed records also tie CCS Commerce to a member of the Slaughter family in Dallas.
Other owners of the overall site include Neiman Marcus itself, according to Dallas County land records. Larger companies typically don’t want multiple landlords, according to Sriram Villupuram, an associate professor at the University of Texas at Arlington. “Tenants usually try to avoid the situation,” he said. “They don’t want complications.”
In conclusion, the closure of Neiman Marcus’ flagship store in downtown Dallas is a result of a complex land dispute, which has been ongoing for several years. The company has been unable to come to an agreement with the part-owner of the land under the building, leading to the termination of its occupancy and the eventual closure of the store.
FAQs:
Q: Why is Neiman Marcus closing its downtown Dallas store?
A: Neiman Marcus is closing its downtown Dallas store due to a complex land dispute, which has been ongoing for several years. The company has been unable to come to an agreement with the part-owner of the land under the building, leading to the termination of its occupancy and the eventual closure of the store.
Q: What is the reason for the closure?
A: The reason for the closure is the small plot of land under the southwest corner of the Neiman Marcus building, which is owned by other parties. This small plot of land, which includes the area under the escalator, men’s grooming products, and Tom Ford cosmetics on the first floor, extending upward, is the reason for the closure.
Q: Who is Slaughter Partners?
A: Slaughter Partners is a Dallas company that is one of the owners of the land under the Neiman Marcus building, according to state filings.
Q: Why did Neiman Marcus fail to come to an agreement with the part-owner of the land under the building?
A: Neiman Marcus failed to come to an agreement with the part-owner of the land under the building due to the complexity of the land dispute, which has been ongoing for several years. The company has been unable to reach a global agreement on a renewal, leading to the termination of its occupancy and the eventual closure of the store.
