During 18 years at NYCDCAS, Debbra McAllister completed more than $200 million in real property acquisition transactions.
Galleria at White Plains Redevelopment Taking Shape with New Partners; Portion of Mall Will Close in Early 2023
WHITE PLAINS—The long-promised redevelopment plan for The Galleria at White Plains, which was the focal point of the urban renewal of the downtown district in the late 1970s and early 1980s, is taking shape.
While details are still sketchy at best, the owner of the 870,000-square-foot, four-level retail property—Pacific Retail Capital Partners and Aareal Bank—announced on Nov. 3 it was bringing on new joint venture partners—SL Green Realty Corp. of New York City and the Cappelli Organization of White Plains to “explore mixed uses” and “rebalance the mix of uses” for the property that has fallen on hard times as its two chief anchors—Macy’s and Sears—have both shuttered their stores there. Pacific Retail Capital Partners is headquartered in El Segundo, CA and Aareal Bank is based in Wiesbaden, Germany.
Both Macy’s and Sears shut their anchor stores at the Galleria at White Plains in the first quarter of 2021. Pacific Retail Capital officials said they plan to close a portion of the mall early next year in connection with its redevelopment plans that many observers believe will be tilted heavily towards residential use.
“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.”
No financial terms of the joint venture partnership were released. Macy’s sold its White Plains store to Pacific Retail Capital in 2019 for $27 million, according to the Journal News.
In its announcement, Pacific Retail Capital stated that with its new partners it “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.”
“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.”
He added that the redevelopment of the Galleria comes as Cappelli entity LRC Construction works on Hamilton Green—the estimated $600-million redevelopment of the former White Plains Mall. RXR Realty is leading a partnership in that massive project that calls for the construction of 860 apartment units in four high-rise buildings, 84,500 square feet of specialty retail and restaurant space, including a Food and Craft Hall, 27,000 square feet of office space, and an approximately 956-space parking garage and open space. The Hamilton Green project will be built in phases.
“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,” Cappelli stated.
Cappelli has a long history in Downtown White Plains, redeveloping the former Macy’s store on Mamaroneck Avenue into City Center, as well as developing multiple high-rise towers including the Ritz-Carlton Hotel and Residences, Trump Tower at City Center and the Lofts at City Center in White Plains.
“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.
Pacific Retail Capital Partners of El Segundo, CA acquired the Galleria at White Plains from Simon Property Group in September 2016. No purchase price was reported. Pacific Retail announced the purchase as one of three regional malls totaling 2.8 million square feet it added to its portfolio at the time.
At deadline, further information on the specifics of the proposal, when plans will be submitted for review to the City of White Plains, as well as occupancy rates and other property information were not available. Please check back with https://www.realestateindepth.com for further updates.