Sunrise Mall in Massapequa, New York, is undergoing a transition as Urban Edge Properties, the mall's owner, is not renewing tenants' leases. The company is evaluating redevelopment plans, but residential development is not being considered due to zoning restrictions. The mall, currently about 50% vacant, has struggled with high vacancy rates for years following the loss of major anchor stores. Key anchors include Macy's, Dick's Sporting Goods, Dave & Buster's, Raymour & Flanigan, and XSport Fitness.
The mall reported net operating losses of $400,000 in the fourth quarter of 2021 and $3 million for the year. Significant store closures, including JCPenney, Walmart, and Sears, have contributed to the mall's financial difficulties. Urban Edge recently paid $20 million to terminate remaining leases at Sunrise Mall and two other properties.
While specific redevelopment plans are undisclosed, Urban Edge is exploring various options, excluding residential development. The town board emphasizes preserving the suburban quality of life, aligning with current zoning laws that restrict development to light industrial and commercial uses. It's unclear when tenants will need to vacate, with leases expiring at different times.