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Local Investors Buy Long Island Mall at Steep Discount

A group of local investors has teamed to buy most of the 1.1M SF Broadway Commons mall in Hicksville at a steep discount from a Swiss bank.

The investors, who plan to upgrade the historic retail complex, bought it as the entity K/BTF Broadway LLC, which includes Rockville Centre-based BTF Capital; the KABR Group, based in Englewood, NJ; and AJM BRE Venture, a joint venture of Long Island firms AJM Real Estate and Burman Real Estate.

According to a report in the Long Island Business News, the partners bought 728K SF of the 1.1M SF retail complex, which sits on 68 acres. Not included in the transaction was a 240K SF IKEA store, which IKEA owns, and a 137K SF Target store, which target owns.

The IKEA store at Broadway Commons is the furniture chain's only outlet on Long Island.

The mall in its entirety is 90% occupied, the report said, but that includes a 200K SF store that Macy's vacated in 2020 and a 17K outlet that Old Navy vacated. Macy's continues to pay rent on its lease, which doesn't expire for another two years, the report said.

Since 2018, Broadway Commons has been operated by Los Angeles-based Pacific Capital Retail for owner UBS Group AG, the Swiss investment bank. According to a report in Newsday, UBS sold the mall property for $40M, which is less than half of what KKR paid for it in 2014.

Broadway Commons, more commonly known as Broadway Mall, opened in 1956 as the Mid Island Shopping Center, in the midst of a population surge in Nassau County in the center of Long Island. It was one of the first malls in the Tri-State area designed to accommodate 40,000 shoppers daily.

In 1964, the Fox Plaza North and South Cinerama was built in the north parking lot, one of the earliest multiplex theaters in the U.S. Mid Island Shopping was enclosed in 1968 and later renamed Broadway Mall. The mall was completely redeveloped in 1995.

Vornado Realty Trust acquired the Hicksville shopping center in 2005 for $153M and sold it to KKR for $94M in 2014. In 2017, the property was renamed Broadway Commons and KKR sold five parcels for about $60M. KKR fully exited in 2018, when Pacific Retail and UBS came in.
Reprinted with permission from the Tue, 06 Feb 2024 07:06:48 EST online edition of GlobeSt © 2024 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.