Target Will Fill An Old Toys R Us Space In Brooklyn
Target is stepping in to fill a giant space left by Toys R Us and Babies R Us at the Ceasar’s Bay Shopping Center in Brooklyn.
The space at the outdoor center in Gravesend spans 90K SF, The New York Post reports.
“Target will have a big store, and with free parking, it will be a suburban-feeling store,” said Jeff Mooallem, president and CEO of Gazit Horizons, which owns and manages the center in partnership with Surrey Equities. “We made the bet, even with Toys going bankrupt, and we were able to lease even faster than we expected.”
Last year, Gazit Globe — which is the Tel Aviv-based parent of Gazit Horizons — paid $48.8M for a 41% ownership stake in the center, according to the Post. The seller was a Toys R Us entity, which was shedding assets as part of the retailer's bankruptcy. Kohl’s, Best Buy and Modell’s are all tenants at the center.
Toys R Us moved to shutter or sell all U.S. locations last year, and has since emerged from bankruptcy as an entity known as Hill Street Properties. Hill Street will continue to dispose of the real estate of the former toy chain, just as spinoff REIT Seritage Growth Properties has been selling Sears locations.
Target has been expanding its small-concept store presence in New York City in recent years, inking seven leases in the city in 2018. The moves were part of a shift away from large stores in suburban markets toward smaller stores suited to urban markets. The new space appears to be the rare New York City store that fulfills both roles.
CORRECTION, MARCH 19, 4 P.M. ET: An earlier version of this story misspelled the name of Ceasar's Bay Shopping Center. This story has been updated