New owners are redeveloping the former Macy’s store at a Hudson Valley shopping center to make way for an At Home store and additional retailers.
Joseph Farkas, CEO of Metropolitan Realty Associates
Metropolitan Realty Associates has agreed to buy the Macy’s store at the Simon-operated, open-air Shops at Nanuet (N.Y.) for an undisclosed price. The firm has already secured a tenant for slightly less than half the 218,000-square-foot retail space and has also announced plans to modernize the site and reconfigure access points for premium single or multiple retail spaces.
At Home signed a 10-year lease for the first floor, comprising about 101,500 square feet. Welco Realty represented the tenant.
Metropolitan Realty is working with equity partner Angelo Gordon & Co. in a sale-leaseback agreement with Macy’s that will enable the department store to continue to operate fully through the holiday season.
“The purchase of Macy’s at the Shops at Nanuet is a win-win for all parties,” said Joseph Farkas, Metropolitan Realty's CEO. “MRA gets to acquire prime retail space in an area with excellent demographics and long-term potential to execute a value-add strategy, and it allows one of the fastest-growing retailers in the country to enter a new market as part of a national expansion program focused on exciting growth opportunities.”
At Home has grown rapidly since going public in 2016. The company, established in 1979 in Garden Ridge, Texas, is now based in Plano, Texas, and operates nearly 200 stores across 36 states.
Macy’s was one of the mall’s two original anchor stores (operating as Bamberger’s when Nanuet Mall, as the center was then called, opened in 1969). The department store owned its space there, as did Sears. Simon redeveloped and reopened the mall in 2013 as a 760,000-square-foot, open-air lifestyle center renamed The Shops at Nanuet.
Among the center's retail tenants now are Fairway Market, Regal Cinemas and 24 Hour Fitness, plus notable specialty retailers Apple, Coach, J.Crew, Lululemon, Michael Kors and Sephora, as well as BJ’s Restaurant & Brewhouse, P.F. Chang's, Starbucks and Zinburger Wine & Burger Bar. After filing for bankruptcy last month, Sears announced that it will close its store at the mall as part of a national shedding of underperforming units.
Farkas, who has experience rehabilitating defunct properties — among them the former Stella D'oro factory in the Bronx, N.Y., and 711 Stewart Ave., in Garden City, N.Y. — says Metropolitan Realty will redevelop the entire Macy’s space to enliven it for a contemporary retail experience. "Our ability to quickly find a high-quality tenant such as At Home for the space confirms our belief in its ability to attract quality retailers for the vacant space," said Farkas. "And we are confident that our redevelopment will breathe new life into a store that has become outdated, and [that we can] transform it into the kind of place where today's consumers want to shop.”
By Brannon Boswell