The leases of tenants at the Sunrise Mall in Massapequa will not be renewed, as the owners of the sprawling retail complex plan for its future redevelopment.
Manhattan-based Urban Edge Properties announced Tuesday that it won’t renew tenant’s leases as it evaluates its options for reimagining the two-story, 1.2 million-square-foot shopping mall located on 77 acres on Sunrise Highway.
Though the eventual reboot of the retail complex is still on the drawing board, Urban Edge executives said they are not considering any residential development.
“Sunrise Mall is clearly in transition, a reflection of the challenges facing a generation of shopping malls across Long Island and the nation,” Coleen Conklin, vice president of marketing for Urban Edge, said in a company statement. “To ensure it remains a positive and contributing economic anchor for the surrounding communities, the Town of Oyster Bay and Nassau County, we need to create an orderly roadmap for that transition.”
The mall currently has about 50 tenants and a 50 percent occupancy rate, that’s down from the 65 percent occupancy rate a year ago when Urban Edge, Sagamore Hill Partners and JG Petrucci bought the property from Unibail-Rodamco-Westfield for $29.7 million plus $6 million in “additional contingent consideration,” according to the company.
Urban Edge has been informing its existing tenants that the company “welcomes the opportunity to assist them” as their leases expire.
“We are prepared to work closely with our tenants to ensure a smooth transition that, in turn, enables them to plan accordingly,” Conklin said. “This will allow them to make deliberate decisions that protect the needs of their customers and employees.”
The mall’s 208,000-square-foot Macy’s department store remains open, while the 201,000-square-foot Sears store on the property closed last year. The mall’s owners are currently in discussion with both of those companies to see how they might fit with their future redevelopment plans.
“Like many malls, Sunrise Mall has been buffeted by the changing marketplace, consumer trends, and the ongoing COVID-19 pandemic,” Conklin said. “However, no matter what redevelopment plans are ultimately proposed and approved, Urban Edge recognizes its responsibility to seek the input of our neighbors, community leaders, and elected officials to ensure that the property continues to be a significant and positive asset to the surrounding communities.”