Vornado Takes Manhattan (Mall)
Nov 29, 2006 12:52 PM
The property boasts Manhattan’s only Steve & Barry’s University Sportswear and Jimmy’Z locations, but the rest of its tenant list is taken by the likes of Express, Strawberry and Victoria’s Secret – retailers that can be found in street-level locations throughout Manhattan.
“When you go in that area today, you’ll see that the place is mobbed, but the question is: who are the right tenants?” says Futterman. “I think somebody should complete a feasibility study on the mall to make it appealing to a combination of people who work and commute to the area.”
The mall’s history dates back to 1989 when a partnership of Silverstein Properties, Melvin Simon & Associates and Zeckendorf Companies took Gimbel’s—which had operated on the site for 76 years—and converted it. It first opened as A&S Plaza with Abraham & Straus as an anchor and containing 700,000 square feet of retail space.
The property struggled from the start. Observers felt the property had too many levels—13 in all—that turned off customers, especially since elevators in the mall were unaligned, meaning shoppers had to run from one end of the building to the other every time they wanted to go up a single floor.
In 1995, A&S was changed to Stern’s and the property’s name changed to Manhattan Mall. But tinkering was to no avail and the property was bought out of bankruptcy in 1998 by Argent Ventures and Lehman Brothers for $135 million. (HausInvest Global eventually bought out Lehman Brothers.)
Three years later, the Stern’s closed at which point it was converted to office space in a $50 million renovation.
-- Elaine Misonzhnik
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