Source: Wikimedia Commons

Macerich, the mega-sized shopping center real estate company, has just dropped a whopping $751 million dollars in purchasing the Mill Basin based Kings Plaza Mall (5100 Kings Plaza), according a report in the Wall Street Journal.

Compared to some of the more ultra modern and glitzy shopping centers that are currently in vogue across the nation, Kings Plaza falls short, however the prime location and high foot traffic made it an appealing investment.

Because of the difficulty in developing new real estate in a dense city like New York, the threat of competition from new malls is practically nil.

“They’re both in urban or semiurban environments where it would be very difficult to replicate them,” Dan Fasulo, managing director of real estate research company Real Capital Analytics, told the Wall Street Journal. “That creates tremendous scarcity value.”

Kings Plaza also generates $650 per square foot in sales annually, compared to the $370 industry average, a result of New York’s dense population. Even still, Macerich still plans to replace stores with lower revenue streams with higher-end outfits, however no details were given.

In addition to the $751 million spent on Kings Plaza, the Macerich Company also spent $500 million on the Green Acres Mall in Valley Stream, bringing Macerich’s investment total in the area to a staggering $1.25 billion dollars. Both units were owned by Vornado Realty Trust, who intends to leave the mall business altogether.

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  • a good neighbor

    the mall has great potential, and for $3 parking fee you can’t beat it. hopefully toyrus/babyrus will move back in instead of on an isolated location further down.

    • raylotekka

      What do you mean, move BACK in, in regards to Toys r Us? Were they ever actually in the Plaza? I remember KayBee Toys as the only toy store, and I think that one is gone …

      • Arthur Borko

        Remember Discovery Zone? That was the shit…

      • Barkingspider07

        The only ToysRUs I remember in KP, was the little shop that they opened only for the Christmas Holiday. I remember KayBee also as the only toy store in the mall

      • JR

        yeah until Mitt effn Romney ran KB into the ground…

    • Psychosis all Night

      ye thats what we really need a toys r us…. grow up

  • Tuth

    “however the prime location and high foot traffic made it an appealing investment.” While I won’t argue about this being a good investment the other assessments are pure nonsense. There is very little foot traffic in the area since many nearby stores have gone out of business and there are no large building in the area, mostly just private houses. All the people come by either bus or car. And how exactly is this a prime location? There is nothing nice about the area. No nice restaurants or family attractions, no parks, or playgrounds. The only thing that makes this attractive is that it’s the only real mall in Brooklyn which has both large stores and boutiques. Personally I really dislike the shopping experience there but out of necessity find myself going there more than I would like.

  • nolastname

    I read about this in Bloomshits paper. All I care about is having to pay for parking.
    Not every mall charges for parking.
    I force myself to go once a year and then it is for gift certificates.

  • http://www.brucebrodinsky.com Bruce B

    I must have cheap taste. I thought the stores already in there were high-end. Ya gotta be kidding me. Then again, mom used to shop at John’s Bargain Store, and my toys were bought at a store named “Thrifttown” in Canarsie.

  • http://www.facebook.com/profile.php?id=528447725 facebook-528447725

    Couldn’t they just tear it down?????

    • JR

      thats right all the area needs is more residential high rises… think before you speak

  • chuckie

    high end stores? i didnt know you could buy clothes with foodstamps…

  • NoNoKingsPlaza

    Going to Kings Plaza is a waste of time. Most of the time you can’t find what you want to purchase. IMO, you should not have to pay for parking when you go shopping. That alone is a big turnoff. Alexander’s was a great place to shop. Too bad they went out of business. Macy’s is good for their sales sometimes. But when one can go on the internet and find great deals, often with free shipping, why go to the mall.

  • AIG_Quant

    Although I don’t wear a bulletproof vest, I have been to Kings Plaza a few times in the past decade. It’s gotten worse every year. I feel really bad for those who don’t have access to a car so they can go to Long Island and shop at a real mall. Anyways Amazon.com should suffice in the meantime.

  • Mojo89

    Kings plaza is a straight dump that’s loaded with stores like jimmy jazz, epic, and about 20 sneaker stores. No shopper looking to drop serious cash in a high end store would go there out of fear of being mugged by the animals that shop in the aforementioned establishments. Only good thing there is the cookie house.

    • Psychosis all Night

      lately the quality of them cookies been goin downhill 2

  • Barkingspider07

    As long as they leave Sears, Panera Bread and Chock full of Nuts alone, I don’t care what other stores are there!

  • NI51965

    Usually a place has a parking fee,to keep out non shoppers,from taking up the spots.But the mall garage is isolated,and there is no other business in the area to take up the parking.It is done out of pure greed.

    • Brooklyn Bus

      I agree that the parking fee is nonsense considering the location. I refuse to pay it. Actually since the renovations, it looks nicer now than when it was new. If you go shopping there in the mornings it’s not too bad. I went ther several years ago late Saturday afternoon, and I swore I would never go back again at that time.

      They tried to justify the parking fee initially by saying it would be used to pay for increased security. Many believe that never happened. They should refund the parking fee with a purchase.

  • JR

    High end stores better represent Tommy Hilfiger or DKNY… Bringing in Prada or Gucci will only result in the NYPD arresting drug dealers and mafia members right then and there on the spot…