Value Slashed By Almost 90% At Vacant Brooklyn Retail Property

106 Court St., formerly home to the Regal/United Artists Theater, has seen its value drop dramatically in a recent appraisal.
106 Court St., Formerly Home To The Regal/United Artists Theater, Has Seen Its Value Drop Dramatically In A Recent Appraisal.

New York City retail might be rebounding, but the damage done by the "retail apocalypse" and then the pandemic is far from over.

At one large Brooklyn retail property, that damage was made clear this week when a new appraisal found its value had dropped by 88% after two major departures left it vacant.

The value of the 102K SF retail building at 94-110 Court St. in Brooklyn Heights has dropped from $48.7M in 2013 to just $5.7M in a recent appraisal, according to DealX data reported by Morningstar Credit.

The property is fully vacant following the departures of its two tenants last year. It was previously home to the Regal/United Artists Theatre, famous for its "shout back" movie screenings, which had a lease expiration of July 2026 but closed unexpectedly in January 2022. The property’s other tenant was a Barnes & Noble bookstore, which vacated upon expiration of its lease last July, according to special servicer commentary.

A New York Times article from 2022 identified Madison International Realty as the property's owner. The company didn't respond to Bisnow’s request for comment Thursday.

Madison International acquired the complex from Forest City in 2018 for $32.7M, according to city deed records. Forest City was the sponsor on a $31.9M CMBS loan secured by the property, issued in 2013 by Barclays.

That loan matured in March, and Madison International requested a loan extension, according to Morningstar Credit's CMBS database. The special servicer, Rialto Capital Advisers, agreed to a loan modification, for which it is seeking the approval of the CMBS trust, UBSBB 2013-C6, it wrote in June.

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