Regency Centers JV to Redevelop Long Island Shopping Center

Image by Brittani Burns via Unsplash.com

A joint venture between Regency Centers and Blumenfeld Development Group plans to redevelop SunVet Mall, an 18-acre, 282,223-square-foot shopping mall in Holbrook, N.Y. The development partners intend to replace the vacant property with an open-air, 168,000-square-foot retail center anchored by Whole Foods Market.

Construction is set to begin later this year. Regency Centers will retain a majority stake in the joint venture and assume operations and leasing duties at the site.

The redevelopment of SunVet Mall follows Regency Centers’ $1.4 billion acquisition of Urstadt Biddle Properties Inc., a merger that involves 5.3 million square feet of retail space across 77 properties. The transaction is expected to close in the third of fourth quarter of this year.

New life for the site

Built in 1973 at 5801 Sunrise Highway, SunVet Mall used to be anchored by a 60,000-square-foot Pathmark supermarket and a 100,000-square-foot Toys R Us store. In the 2010s, the property fell into distress, losing many of its top tenants. The mall officially closed its doors in July 2022.

The first stages of the redevelopment project began that same month, when Blumenfeld signed a 99-year ground lease for the entire property, according to Long Island Business News. In October of that year, the firm sent out applications for the development’s architectural planning, as detailed in a property report from Patch.

READ ALSO: Retail Leasing Trends to Watch in 2023 and Beyond

The redeveloped property is set to include a central site, to be occupied by Whole Foods and two smaller tenants. Additionally, the developers are planning to construct 53,000 square feet of retail space, as well as six outparcel buildings. After its completion, the site will host a newly relocated Citibank. Situated in between the location’s namesakes, Sunrise and Veterans Memorial highways, the new shopping center will take shape in a retail corridor that includes several big-box stores such as Costco, Target and Best Buy.

Groceries in high demand

The redevelopment of SunVet Mall takes place as owners and operators of shopping centers reimagine their spaces as part of a broad evolution of the sector. Grocery-anchored assets remain in high-demand from both developers and investors due to their potential to generate high foot traffic, following the cessation of pandemic-era online orders.

Long Island has seen several recent high-profile, grocery-anchored retail investments. In nearby Riverhead, N.Y., Prestige Properties & Development Co. completed the $71 million purchase of a 395,000-square-foot property last month.

In early 2023, Mattone Investors obtained an $80.1 million refinancing loan for a 428,483-square-foot retail center in Westbury, N.Y. A Food Bazaar Supermarket anchors the property.