Brooklyn's Progress
February/March 2007

BY LETICIA THEODORE

The Gallery at Fulton Street commonly known as Albee Square Mall is one of those Brooklyn haunts you can hear about on the train or in a rap song. It sits at the back of world famous Junior's Restaurant, on the plaza facing the beautiful Washington Mutual Bank branch located in the old Dime Savings Bank building. The Mall, a Brooklyn fixture, was sold for $125 million and will likely be torn down to make way for a high rise.

Zoning changes made in 2004 means the buyers, Acadia Realty Trust, will be able to build skyward. The new zoning allows for 1.4 million square feet of construction. Plans for the site include of retail space, Class A office space and an estimated 1,000 rental apartments with 20% set aside for moderate income tenants. New York City Deputy Mayor for Economic Development and Rebuilding Daniel Doctoroff says the site will hold one of the tallest buildings in the Downtown Brooklyn area.

“The redevelopment of Albee Square Mall is a milestone in the Downtown Brooklyn Plan, and is the first major mixed-use development within the Plan area.  With nearly 500,000-square-feet of retail space, a substantial amount of class-A office space, and hundreds of units of mixed-income housing, the new development will further the district’s position as a 24/7 live-work neighborhood,” said Joe Chan, president, Downtown Brooklyn Partnership.

This latest incarnation will be a far cry from the building and adjacent parking garage purchased by Thor Equities in 2001 for a reported $25 million. Over the years there were minor upgrades to the retail complex. But, while trendier stores like Forever 21, took up residence on the main floor of the mall, the lower level suffered. Today the lower floor is poorly lit with tired looking storefronts, most vacant, and a defunct food court that at one time buzzed with shoppers.

“It has been 12 years since the Regional Planning Association submitted the results of its study of the redevelopment potential of Downtown Brooklyn to the Brooklyn Chamber of Commerce. That report initiated a series of discussions that ultimately led to the Downtown Brooklyn Plan. The redevelopment of the Albee Mall marks a turning point. We no longer need to talk about the Downtown Brooklyn Plan; we can proudly refer to the Downtown Brooklyn Renaissance. I look forward to witnessing the continuing transformation of Downtown Brooklyn, building by building, block by block,” said Mark M. Kessler, interim president, Brooklyn Chamber of Commerce. “First we had DUMBO, the next hot community may well be DoBro.”

Under the agreement Thor Equities will sell its lease, which has 70 years remaining to Acadia Realty Trust and its development partner P/A Associates. The principal of Thor Equities, Joe Sitt, is the developer bent on making Coney Island a year round resort town.