PITTSBURGH (AP) – A developer is paying $8 million to buy two floors of the recently closed Macy’s store in downtown Pittsburgh with plans to build a hotel in the space.

Matthew Shollar, a Pittsburgh partner in the deal made by Reception Hotels and Resorts of Monsey, New York, says the sales price includes money to help Philadelphia-based Core Realty redevelop the entire building.

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The 155-room, “fitness oriented” hotel is expected to open in 2017.

The former Macy’s building was originally a Kaufmann’s department store. It opened in 1887 before Macy’s bought the building in 2005. Macy’s sold the building to Core in July before closing the store in September.

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Core plans to develop the rest of the building into new retail space and apartments.

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