HICKSVILLE, NY-Vornado Realty Trustis selling its last remaining Long Island shopping center property. The office and retail REIT said late Friday afternoon that it had entered into an agreement to sell the 1.1-million-square foot Broadway Mall here for $94 million, about 40% less than the $152.5 million it paid to acquire the property in December 2005. The buyer was KKR and Broadway Mall Pacific, a partnership between Pacific Retail Capital Partners, Clifton Realty and Peter Fair of Continuum Partners.
The sale is in line with New York City-based VNO’s stated intention to reduce its retail holdings. Months after VNO sent a letter to shareholders saying that it would pare its shopping center portfolio, it sold Kings Plaza in Brooklyn and Green Acres Shopping Center in the Nassau County community of Valley Stream to Macerich Co. for a combined $1.251 billion.
Whoever the new ownership of Broadway Mall is, that organization will have control over the only Ikea store on Long Island, which is leased to the furniture retailer through 2088. The 58-year-old mall property also counts Macy’s, Forever 21, a 12-screen movie theater and H&M among its anchor tenants, and is shadow anchored by Target.
Original owners Walter Stackler and Leonard Frank developed the property as the Mid-Island Shopping Plaza, which opened in 1956. It was renamed Broadway Mall in 1989 and filed for bankruptcy protection the following year. The addition of Ikea to the tenant roter in 1991 began to turn its fortunes around.
VNO hired Cushman & Wakefield to market the property this past November, according to published reports. In C&W’s listing for Broadway Mall, the firm notes that the center serves a population of 294,643 within a five-mile radius, with an average household incme of $129,091.
The listing notes that the shopping center represents “the rare opportunity to acquire an enclosed regional mall in Nassau County with significant upside from tenant repositioning and the leasing of available space.” It’s currently 92.6% occupied.