The 440,000-square-foot space at Downtown Brooklyn\u2019s 422 Fulton Street \u2014 the largest block of retail space currently available in New York City and the former site of a Macy\u2019s department store \u2014 will become BKX, a five-floor retail and amusement destination that\u2019s being described by developers as a \u201cnext-generation cultural and commercial hub,\u201d Commercial Observer has learned.<\/p>\n
Plans for BKX were shared exclusively with Commercial Observer by one of the property\u2019s owners, United American Land<\/a>, in conjunction with co-owner the Jackson Group<\/a> and retail brokerage and consultancy Dreamscape Retail & Entertainment<\/a>, which is spearheading the conversion efforts, including tenant recruitment.\u00a0\u00a0<\/p>\n SEE ALSO: Barry LePatner of LePatner & Associates: 5 Questions<\/a><\/p>\n \u201cWhen we acquired this property, we saw an opportunity to reimagine one of New York\u2019s most iconic sites for the next generation,\u201d Albert Laboz, a principal of United American Land, said in the announcement. \u201cRather than pursuing a traditional retail redevelopment, we\u2019re creating a destination that reflects how people want to spend time today \u2014 bringing together entertainment, dining, retail and community under one roof. BKX represents our belief in Downtown Brooklyn and its future as one of New York City\u2019s most dynamic mixed-use neighborhoods, where people come to live, work, learn and explore.\u201d<\/p>\n The company described the type of tenants the building will house as \u201cflagship retailers, entertainment concepts, immersive attractions, food and beverage experiences and next-generation brands seeking a highly visible urban presence.\u201d<\/p>\n Dreamscape\u2019s experiential and entertainment roster<\/a> includes projects at South Street Seaport, including Pier 17; One Wall Street; the Arcade Nashville; and Rio Las Vegas, a casino resort. The company is working on BKX with experiential design firm iCrave<\/a>, which has worked on projects such as<\/a> the TSX Broadway mixed-use tower in New York and the Sphere entertainment venue in Las Vegas.<\/p>\n The project will be the first of its kind in New York City, said Joshua Strauss, president of retail and entertainment at Dreamscape.<\/p>\n \u201cWhen we were brought the idea by the owners, United American Land and Jackson, we thought, \u2018Wow! What an incredible opportunity to create a branded destination in 450,000 square feet all under one roof, which doesn\u2019t exist in New York,\u2019\u201d said Strauss. \u201cWe all agreed that this is something that could be iconic out of the gate if we execute on it.\u201d<\/p>\n Scott Zinovoy, senior vice president of retail and entertainment at Dreamscape, also noted that this structure increases opportunities for neighboring businesses.<\/p>\n \u201cWithin 450,000 square feet under one roof, one owner can decide how to bring in the right tenants to fit this project scope,\u201d said Zinovoy. \u201cWe can bring in groups that are synergistic with each other \u2014 that don\u2019t directly compete with each other.\u201d<\/p>\n Zinovoy noted the stark contrast between this and the scenario in a more traditional entertainment and retail neighborhood in New York City.<\/p>\n \u201cLook at Times Square, for example, where some of these groups have historically gone,\u201d said Zinovoy. \u201cThere\u2019s nothing stopping a tenant that\u2019s directly competing with you from coming into the building next door or right across the street if it\u2019s owned by a different landlord. Here, we have the ability to curate and bring together the right mix of tenants under the BKX umbrella.\u201d\u00a0<\/p>\n The five-story property is also distinguished by 60,000- to 70,000-square-foot floor plates, and ceiling heights ranging from 17.5 to 22.5 feet high.<\/p>\n Visitors to the site will be greeted at the entrance by a central atrium featuring LED screens and described by United American Land as \u201ca dramatic shared gathering space envisioned as the heart of the destination.\u201d<\/p>\n \u201cThat atrium is going to draw people in whether they want to shop or play or create Instagrammable moments,\u201d said Strauss. \u201cWe\u2019ll have theatrical events and programming in that space. It\u2019s going to be a reason for people to come to the property, and it\u2019s critical to the success of this property.\u201d<\/p>\n Strauss also said that the tenants they hope to sign include traditional large-format retail to include a wellness or fitness facility in addition to food & beverage and immersive attractions.<\/p>\n While no lease deals have yet been announced, Strauss told Commercial Observer that negotiations with potential tenants are proceeding apace.<\/p>\n \u201cWe\u2019re very far along in negotiations with tenants for about half of the project right now,\u201d said Strauss.<\/p>\n Zinovoy said that rather than having one central grand opening, BKX will be introduced to the public as tenants are individually ready to open, most likely beginning around a year to 18 months from now. They plan to announce tenants as their leases are signed, hopefully beginning within the next few months.<\/p>\n The site at 422 Fulton Street had served as a department store since 1885<\/a>. Originally called Wechsler & Abraham, the store\u2019s name was changed to Abraham & Straus in 1893 when the Straus family, partners in Macy\u2019s, bought out co-founder Joseph Wechsler\u2019s share. The name was changed again due to a merger, this time to Macy\u2019s, in 1995.\u00a0 \u00a0\u00a0\u00a0<\/p>\n The Macy\u2019s site was acquired in December 2024 by a consortium of United American Land, Crown Acquisitions<\/a> and the Jackson Group for $23 million, as Commercial Observer previously reported<\/a>. At around $52 per square foot, that price marked a steep discount on the property from Brooklyn\u2019s average sales price of $617 per square foot for mixed-use and retail properties as of the first half of 2024.\u00a0<\/p>\n (The remainder of 422 Fulton Street, which consists of 10 floors of office space upstairs from the retail site, is owned by Tishman Speyer<\/a>, and is completely separate from the former Macy\u2019s property.)<\/p>\n The deal came at a rough time for Macy\u2019s, which had announced<\/a> in February 2024 the closure of 150 of its then 502 stores, saying that the stores in question represented 25 percent of the company\u2019s square footage but only 10 percent of its sales. The company said it expected to see $275 million<\/a> from the sale of retail properties in 2025.\u00a0\u00a0<\/p>\n Macy\u2019s made the closure of the Downtown Brooklyn location official in January 2025<\/a>, and the store closed for good two months later.\u00a0<\/p>\n Area residents and shoppers got a taste of the site\u2019s potential future in January 2026, when the former Macy\u2019s building hosted an interactive light installation called \u201cIn Every Transition, a Pattern.\u201d<\/p>\n Presented by the Downtown Brooklyn Partnership, the city\u2019s Department of Small Business Services and Masary Studios<\/a>, the exhibit, which ran until March, displayed \u201crhythmic patterns of light, driven by audio recordings of the Downtown Brooklyn environment\u201d through the building\u2019s windows, according to a release from the organizers<\/a>.<\/p>\n While it\u2019s still unknown what exactly BKX will feature, its creators say they hope to bring exactly that sort of creative energy to a spot that will ultimately bring different types of entertainment and leisure in a one-of-a-kind presentation to Downtown Brooklyn.\u00a0\u00a0\u00a0<\/p>\n \u201cMost tenants would like to ideally be in a project that feels like it\u2019s bigger than themselves, that has a sense of place, and that feels like it has intention, which is what we\u2019re striving to do here,\u201d said Zinovoy.<\/p>\n