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.
Sandwiched in between Chinese take-out place New Win Way and the Kiev Bakery, a defunct Coney Island Avenue furniture store has given way to a brand new supermarket, Oasis Mega Market.
The defunct furniture store that has made way for Oasis Mega Market. Source: Google Maps. Click to enlarge
Located at 2828 Coney Island Avenue between Z and Kathleen Court, Oasis appears to still be under construction.
Our tipster and roving photographer, Brian Hoo, speculates that it might be a Middle Eastern market, while the store’s sign indicates that Oasis will be a purveyor of fruits, vegetables, breads, cheeses, meats, dairy… and kebabs.
Hoo also tells us that, around 10 years ago, before the furniture store occupied the space, another small supermarket operated in that space.
The long-shuttered Off Track Betting storefronts at 2901 Avenue U will soon have a new tenant: discount savings store Telco.
That should be good news to those who miss Nostrand Avenue’s Dee & Dee, as the companies follow similar models, selling low-cost clothing, housewares and assorted knick knackery.
The opening will mark Telco’s fifth Brooklyn location, and tenth store overall. According to their website, Telco was established in Bensonhurst in 1972, and we at Sheepshead Bites are happy to welcome the latest location of a growing Brooklyn-born chain.
Thanks to John Hampton for the photo, and to all the other readers who tipped us off to this!
The YDE School of 49 Avenue T in Gravesend is picking up and moving to 2533 Coney Island Avenue in Sheepshead Bay.
In a report by Commercial Observer, YDE, a private Jewish school, has leased out a plot of land in a space previously occupied by a Ford Dealership and repair shop for the past 40 years.
The location features a 25,000 square foot one story building and a 25,000 square foot parking lot. The rarity of a deal involving so much space and potential was noted by the deal’s broker,
It is unusual for a 50,000-square-foot plot with tremendous air rights and development possibility to come available in Brooklyn like this,” said Zach Mishaan, a senior managing director at WinickRealtyGroup and broker on the transaction, in a prepared statement. “They have unlimited development rights that they can enjoy over the entire term of the lease and the site will offer them tremendous growth potential for years to come.”
YDE plans to open the school in 2013, starting it off as a high school, but eventually expanding it to all grades. They hold a 30-year lease on the property.
Sheepshead Bites has learned that the former Pathmark location, which occupied 35,000 square feet, is being subdivided into two storefronts, with Aldi filling 18,000 square feet of the property. The second tenant has not yet been signed. Both will have Nostrand Avenue storefronts (as opposed to Pathmark, which had its entrance on the south side of the building), and rooftop parking will remain at the location.
Brooklyn Borough President Marty Markowitz, Assemblywoman Helene Weinstein, Councilman Lew Fidler and Community Board 15 Chairperson Theresa Scavo joined with representatives of the Lefrak organization and Aldi market today to announce that the German-based grocer has signed on to replace Pathmark at 3785 Nostrand Avenue.
“This is a location that has hundreds of thousands of people desperate for a store they could walk to. I know because when I walk around and talk to residents, that’s the only question they want to know,” said Weinstein. “They don’t want to know what’s happening in Albany, they don’t want to know what’s happening in the budget. They just want to know, ‘When can I walk with my cart to go to the store and buy something?’”
YOU READ IT HERE FIRST: Neighbors who want a Trader Joe’s to replace Pathmark at 3785 Nostrand Avenue may be happy to learn that Aldi, a low-cost food market owned by Trader Joe’s parent company, will soon serve up fresh produce and other groceries from the currently defunct storefront beginning late next year.
A customer service representative for the international company confirmed to Sheepshead Bites that Aldi is slated to open at 3785 Nostrand Avenue in October 2013.
Aldi, based in Germany, operates more than 1,200 stores in the United States, and is owned by the same parent company as Trader Joe’s. The company has been growing, with plans to add 80 stores this year to its roster of 75 existing operations. They opened their first two New York City locations in 2011 – first in Queens and a second in the Bronx. And, earlier this month, they celebrated the grand opening of a Manhattan location.
M & I International, the “mecca of Eastern European food” at 249 Brighton Beach Avenue, shuttered its doors in September with plans to renovate and enlarge the building, but neighbors are threatening to oppose the construction if the landlord fails to add required parking spaces.
A rendering of what M&I International’s digs will look like when complete. (Click to enlarge)
The plans were revealed during Community Board 13′s meeting last Thursday, where the landlord’s attorney, Eric Palatnik, requested the community’s green light to build a larger than permitted structure that lacks 76 required off-street parking spaces.
“[The owner] would love nothing more than to put 100 parking spaces underground below that property. It would improve the value of his business exponentially … but he can’t. There’s water,” Palatnik noted, referring to the neighborhood’s high water table.
Palatnik said the landlord – the owner of M & I International – hopes to enlarge the two-story structure to four stories, and increase square-footage from 22,800 to 45,600 – or 11,400 square feet more than zoning allows. The two new floors will be used as a daycare and medical office, and the rent will be used to offset the renovation of the building, which suffers from a sloped first floor and varied ceiling heights, as the space has assimilated multiple buildings on five tax lots as it has grown over the years.
YOU READ IT HERE FIRST: After more than 30 years serving the community, Brighton Beach’s Met Foods supermarket at 100-120 Brighton Beach Avenue will close down to make way for a modern two-story office and retail complex.
The supermarket lost its lease to the building to a new tenant who plans to redevelop the property and sublet it out, Arsen Atbashyan, the owner of Commercial Acquisitions, which brokered the lease, told Sheepshead Bites.
Atbashyan negotiated a 49-year land lease, signed near the end of 2011, that gives the developer rights to construct a two-story building on an 18,000-square-foot footprint, with 30,000 square feet of retail and office space available.
Atbashyan said he’s expecting to sign some big brand names as tenants.
“We are currently in the process of just starting the marketing process and at this time no tenants are on the hook,” he told Sheepshead Bites. “But we do expect national tenants to come on board as the marketing goes on.”
The added parking spaces are not only a boon to commuters and Sheepshead Bay Road’s parking starved businesses, but also for October Sky. It could lead to the eventual legalization of a nearby development at 1401 Avenue Z, which was constructed without the necessary number of parking spots. The developer previously filed plans to build a nine story mixed-use building across the street at 1508 Avenue Z (a.k.a. 1501(c) Sheepshead Bay Road), filling it with offices and a 101-car parking garage, which October Sky hoped to split between the new building and the East 14th Street one, bringing it within the boundaries of the law.
Those plans were nixed, however, after local leaders blasted it, saying that it would create a traffic nightmare to have a valet parking garage of that size on congested Avenue Z.
More parking in the area will undoubtedly be welcomed by locals. But I, for one, really miss filling up my bicycle tires for free at the old station as a kid. But those days – days of free air and gas stations in Sheepshead Bay – are long gone.