Ace Hardware, which has operated in downtown Redmond since 1961, has begun liquidating its inventory and will close within several months, Brian Fratzke, a commercial broker working with the property’s owner, said Wednesday.

A new retail tenant has signed a five-year lease to take over the approximately 9,000-square-foot building after Ace departs, said Fratzke, who said he could not reveal the name of the new business until later this month.

Dennis McClay, the owner of the business and building since 1997, plans to retire. He declined to comment. He and his wife will lease the building to the new tenants, Fratzke said.