Category Archives: News

Pacific Retail Capital Partners and Aareal Bank Group Form a Joint-Venture with SL Green Realty Corp. & The Cappelli Organization to reshape the future of White Plains

Project Joins Forces with SL Green & Cappelli, Prominent Players In Regional Development To Explore Mixed-Uses For Galleria at White Plains, a Key Property In Rapidly Evolving City

LOS ANGELES November 3, 2022 – Pacific Retail Capital Partners (PRCP) and Aareal Bank, owner of The Galleria at White Plains, took a major step in securing the future success of downtown White Plains, New York, today forming a new joint venture partnership with two of the most prominent players in the White Plains and NYC Metro real estate market: SL Green Realty Corp. and the Cappelli Organization.

The Galleria, which opened in 1980, consists of approximately ten acres located in a Qualified Opportunity Zone in the heart of Downtown White Plains next to a major mass transit hub of Metro-North. The area is enjoying a renaissance, which over the last decade has seen a near complete transformation. High-rise residential towers have already drawn thousands of new residents to this rapidly evolving area. The 870,000-square-foot mall has become a focal point in completing the reimagination of downtown.

“This is one of the most exciting mixed-use development sites in the New York Metro Area,“ said Steve Plenge, Chief Executive Officer of PRCP. “We have worked over the past few years to acquire the Macy’s fee interest at the site, along with the leasehold interest of the former Sears. Working with our new partners, we will reimagine the site as a vibrant mixed-use project that will be centered on residential development and amenity-based retail.

With a proven track-record of evolving and repositioning properties and a keen focus on unlocking the value and enhancing the quality of its growing portfolio, PRCP, together with its new partners, is dedicated to creating a unique and strategic vision through master planning efforts and cutting-edge design for the Galleria at White Plains to transform it for the next generation.

The two new partners bring extensive local multi-family and office experience to the partnership. SL Green is the largest owner of office real estate in New York City and one of the largest in Westchester County. The Cappelli Organization has been the catalyst for the rebirth of the White Plains downtown and involved with numerous residential, office and retail development projects in greater Westchester County.

“We are extremely pleased for the opportunity to join with SL Green, Aareal Bank Group and Pacific Retail Capital Partners in the redevelopment of The Galleria site,” said Louis R. Cappelli, Chief Executive Officer of the Cappelli Organization. “The reimagining of this property is integral to the dramatic transformation of downtown White Plains that is well underway. We are fortunate to be able to play a role in recreating the property with mixed uses which will link the city’s transit center with the Mamaroneck Avenue corridor.

The Galleria redevelopment comes as our company, is beginning the redevelopment of the former White Plains Mall property into Hamilton Green, also a mixed-use project. Together, the two major projects will effectively complete the transformation of the downtown that began as an Urban Renewal project more than 50 years ago.”

Company founder and CEO Louis Cappelli is responsible for envisioning and constructing City Center 20 years ago, the residential and retail complex which triggered the redevelopment movement that continues today. He followed this with the 46-story Ritz-Carlton towers that remade the city’s skyline. The Cappelli Organization is redeveloping a former shopping plaza where they plan to develop Hamilton Green, an approved $600 million mixed-use complex featuring four residential towers. The site is the last large redevelopment site in the Hamilton Avenue-Main Street corridor that ties the city’s Metro-North station and transportation hub with the existing Galleria at White Plains in the heart of the downtown.

“The Galleria at White Plains is an important property in Westchester County and the region. With our experienced real estate partners, the new masterplan and design will build upon the remarkable renaissance under way in Downtown White Plains,” said Plenge. “The existing Galleria White Plains has been a community staple for many years. We anticipate closing a portion of the mall in early 2023 to evolve the asset and rebalance the mix of uses through a transformative development to meet the needs of the next generation.” Plenge added.

About Pacific Retail Capital Partners

Pacific Retail Capital Partners (PRCP) is one of the nation’s premier retail operating groups of retail-led properties, with more than $3 billion in assets under management in the United States. Based in Southern California, PRCP provides end-to-end sourcing, assessment, underwriting, valuing, development, marketing, and asset management of consumer real estate with a proven track record of repositioning retail properties. PRCP strategically manages over 20 million+ square feet of regional, open-air lifestyle and mixed-use centers. To learn more visit www.pacificretail.com or follow on social @PacificRetail

About Aareal Bank Group

Aareal Bank Group, headquartered in Wiesbaden, is a leading international property specialist. It provides smart financings, software products, and digital solutions for the property sector and related industries, and is present across three continents: Europe, North America, and Asia/Pacific. Aareal Bank Group’s business strategy focuses on sustainable business success, with environmental, social and governance aspects as an integral part of this strategy.

About The Cappelli Organization

A prominent leader in real estate development and construction in the northeast, the Cappelli Organization has a proven 40-year track-record of excellence. Centrally located in Westchester County, New York, the company has successfully completed over 25 million SF of development including mixed-use, retail, waterfront, residential, hotel, restaurants, office, industrial, laboratory and parking facilities, representing a value in excess of $10 billion. The company has a current development and construction pipeline in New York and Connecticut of over 20 million square feet. To learn more visit www.cappelliorg.com

About SL Green Realty Corp.

SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing, and maximizing value of Manhattan commercial properties. SL Green holds interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments. To learn more visit www.SLgreen.com

BREAKING NEWS: White Plains Galleria may soon be making way for major development project

Plans are being created to redevelop the Galleria shopping mall in downtown White Plains into a massive mixed-use project that could involve demolishing part or all of the structure, according to White Plains Mayor Tom Roach.

In a conversation with the Business Journal Wednesday, Roach described what’s taking shape as what could be “the biggest development project” for the city.

The Business Journal talked to Roach before and after a news conference that was held to announce that installation of solar panels is underway at various city buildings. (A separate story will be forthcoming on the solar project.)

Galleria White Plains
Macy’s will close at the end of its final sale. Photo by Peter Katz

The Galleria has lost both of its major anchor stores, Sears, which has already closed and Macy’s, which is in the process of holding store closing sales. The Galleria is owned by Pacific Retail Capital Partners (PRCP) based in El Segundo, California. The company said it has more than $3 billion in retail assets currently under management. Previous anchors at the Galleria included Abraham & Straus and JCPenney.

The mayor revealed that the city had been involved in “serious” ongoing talks regarding redevelopment of the mall site. He said that as owner of the municipal garage adjacent to the mall, the city has a distinct interest in the property.

Roach for several years expressed his concern that the mall’s streetscape is not pedestrian and shopper friendly and he has called for enhancing the frontage, specially along Main Street, to make it more enticing and eliminate the stretches of blank wall that people currently face. General concepts previously were floated to reposition the Galleria as more of an entertainment destination, but that did not take place.

“They wanted those stores out. Those buildings are getting knocked down,” Roach said.  “It’s going to probably be the biggest development project that the city’s going to see. So, that’s a positive. They wanted to get Sears out for a while, and now Macy’s.”

Roach emphasized that the mall’s owners are well capitalized and the project would represent a very large expenditure. He did not have a timetable for when redevelopment plans might be formally submitted but indicated that steady progress is being made in creating them.

The Galleria was built by Cadillac Fairview and opened in the summer of 1980. It straddles two city blocks, with Martin King Jr. Boulevard running under an elevated section of the garage.

The Galleria was credited with jumpstarting the rebirth of the city, which had been in the midst of an urban renewal effort that cleared-out large portions of the downtown. According to PRCP, the mall has 865,000 gross leasable square feet in its four levels. It counts 2,840 available parking spaces. PRCP bought the mall in 2016 from the Simon Property Group for about $120 million.

The Galleria is diagonally across from the site of the two 43-story Ritz-Carlton Residence towers built by developer Louis Cappelli that includes 374 condominiums, a hotel, 70,000 square feet of offices and a 900-car underground garage.

 

Original story [HERE]

Macy’s sells White Plains store to Galleria owner for $27 million, to remain open

The department store will remain open as a tenant.

WHITE PLAINS – Macy’s sold its real estate at the Galleria shopping center to the mall’s owner, Pacific Retail Capital Partners, for $27 million.

Under the new arrangement, the Macy’s store will remain open as a tenant.

Until this sale, Macy’s had been the owner of the store, one of the mall’s anchor stores along with Sears, while the rest of the shopping center was bought by Pacific Retail Capital Partners in 2016.

The sale was part of the retailer’s asset management strategy based on ongoing review of its real estate portfolio across the country, said Emily Hawkins, Macy’s spokeswoman.

“After careful consideration, Macy’s has decided to sell the White Plains, New York, store,” she said in an email. “We will continue to operate the store under a lease, and the store will operate as it does today.”

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AT HOME: First floor of Macy’s Nanuet will become home décor store

The building, which is located on the east end of the mall, is on a 2.25-acre lot on Court Street between Martine Avenue and Main Street. It’s assessed at about $25 million in the city’s 2019 property assessment roll.

In 2016, Pacific Retail Capital Partners purchased the Galleria mall, including the other anchor Sears store property, for $119.58 million, aiming to transform the 870,000-square-foot mall at 100 Main St.

The California-based company hasn’t filed official plans for the site’s redevelopment.

Tom Miles, vice president with Pacific Retail Capital Partners, said the recent purchase deal is part of the ongoing investment effort by the company, which holds $1.5 billion in retail assets.

“They’ll continue to operate the department store,” Miles said of Macy’s. “Just a matter of the ownership of the pad.”

This is not the first store that Macy’s sold in the Lower Hudson Valley in recent years.

In November, Macy’s announced its closure of its Nanuet shop. The 218,000-square-foot store was later sold to AGMRA Nanuet LLC, in care of investment firm Angelo Gordon & Co., for $11.5 million, according to the property records.

Joe Farkas, founder and CEO of Metropolitan Realty Associates, a Manhattan based investment firm, has said that in partnership with Angelo Gordon & Co., his firm plans to redevelop the entire first floor of the former Macy’s store to be occupied by At Home, a national chain of home décor superstores.

Original Story HERE

Galleria: New owner may add new uses, events

The deal was announced this week.

WHITE PLAINS – The Galleria shopping mall has a new owner.

Pacific Retail Capital Partners announced this week that it has added the 870,000-square-foot mall at 100 Main St. —  along with two other shopping centers elsewhere — to its portfolio, in a joint venture with an investment partner.

The total cost of the acquisitions is valued “in excess of $200 million,” although the price of each property was not disclosed.

The Galleria, once considered to be at the top end of the malls in the area, has been in need of a facelift. Mayor Thomas Roach said he was hoping the new owner would revitalize the facility.

“We’ve seen major reinvestment in both the City Center and The Westchester malls and we’re optimistic that we’ll see a reinvestment and improvement in the Galleria as well,” he said.

Steve Plenge, managing principal of Pacific Retail Capital Partners, said in a statement that the company is ready to invest.

“Pacific Retail’s experienced team will be deployed to evaluate each asset in the context of the neighborhood and what is valued by the customers to create a program to further enhance its appeal,” he said. “This may include bringing new uses to the center, improving the physical space, adding events and public programs and in some cases redeveloping portions of the real estate.”

Mall-goers were pleased to hear about the new ownership.

“This is a good news for the city of White Plains,” said Rafael Nievecela, 68, of White Plains. “They are going to fix everything.”

Rene Sperling, 81, of Eastchester, agreed.

“I do like the location. I like Macy’s,” she said, one of the mall’s anchor stores along with Sears. “But it needs a better selection, or an additional selection of stores especially for women.”

Ebo Yumus, who runs phone repair booths in the mall, said he was also hoping the new ownership would lure new tenants.

“Some stores were closed down. People are not coming here,” Yumus said. “We need good stores that everybody knows.”

Simon Property Group, which owns The Westchester in White Plains and The Shops at Nanuet among its 230 properties, acquired the Galleria when it merged with The Mills Limited Partnership in 2007.

Les Morris, spokesman for Simon Property Group, said it’s the company’s long-standing policy not to comment on its property sales or acquisitions.

A potential sale of The Galleria has been talked about for months, with Simon saying in past financial documents it was continuing to sell properties that “no longer meet our strategic criteria or that are not a primary retail venue within their trade area.”

The center features 130 retailers including Macy’s, Sears, H&M, Forever 21 and a food court.

Original Story HERE