Urban Edge Properties purchased the Sunrise Mall on Long Island four years ago for $29.7 million. Yet the plan for the complex remains unclear as tenants empty out.
The partnership tasked with redeveloping the Massapequa center still hasn’t revealed its plans, Newsday reported. The property is soon going to be down to its last tenant when its largest tenant Macy’s vacates 208,000 square feet in the coming months, leaving only a Dick’s Sporting Goods store.
Urban Edge executive Jeffrey Mooallem said the departure of Macy’s will create “some more flexibility” for the redevelopment, and that he hopes for an announcement this year.
Locals have been unsure about the mall’s future, highlighting the struggle to repurpose outdated malls as both ecommerce and the housing shortage grow.
Possibilities for the mall’s future include conversion into a warehouse or mixed-use apartment building. There’s also been chatter that Northwell Health purchased the property, which Mooallem denied.
The Town of Oyster Bay doesn’t expect housing to be the future at the site. Supervisor Joseph Saladino said that the “developer has assured the community that housing will not be part of the proposal.” A zoning change would be required for residential development.
Mooallem also confirmed there was no plan for housing at this moment.
Other partners involved in the 1.2-million-square-foot, 77-acre site include Sagamore Hill Partners and J.G. Petrucci Company, which is primarily involved in industrial assets.
At the time of the acquisition, the vacancy rate at the mall was 35 percent. Anchor tenants besides Dick’s and Macy’s included Sears, HomeGoods and Dave & Buster’s. Three years ago, however, ownership announced expiring leases would not be renewed in order to clear the path towards redevelopment.
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