White Plains, N.Y. — Pacific Retail Capital Partners (PRCP) and Aareal Bank have formed a new joint venture with SL Green Realty Corp. and the Cappelli Organization to consider redevelopment options for The Galleria at White Plains, a 10-acre indoor shopping mall in the New York City suburb of White Plains.
The envisioned renovations to The Galleria are part of a larger renaissance for the area. The mall is part of a qualified Opportunity Zone, meaning that new investments in the area may be eligible for preferential tax treatment under certain conditions.
Built in 1980 by Canadian developer Cadillac Fairview, the mall currently rises four stories and features approximately 865,000 square feet of retail space. The property, including its parking garages, spans two blocks adjacent to the White Plains train station, providing easy access to New York City.
The Galleria is located at the intersection of Main Street and Dr. Martin Luther King Boulevard, and sits in proximity to multiple high-rise residential towers and office buildings, as well as Pace University’s Westchester campus and the White Plains City and Westchester County courthouses.
According to the Galleria’s website, the mall currently includes retailers such as Forever 21, American Eagle and H&M, as well as food options such as Burger King, Dunkin Donuts, Subway and KFC. Sears and Macy’s previously anchored the property, but both closed in 2021, according to local news sources.
“This is one of the most exciting mixed-use development sites in the New York metro area,” says Steve Plenge, CEO of PRCP. “We have worked over the past few years to acquire the Macy’s fee interest at the site, along with the leasehold interest of the former Sears. Working with our new partners, we will reimagine the site as a vibrant mixed-use project that will be centered on residential development and amenity-based retail.”
German banking company Aareal Bank currently owns the property, which El Segundo, California-based developer PRCP manages.
SL Green Realty Corp and the Cappelli Organization bring local multifamily and office experience to the venture. SL Green is a real estate investment trust based out of New York City that currently holds interests in 62 buildings totaling approximately 33.6 million square feet.
The Cappelli Organization is a developer based out of White Plains, notable for developing the 46-story Ritz-Carlton towers in downtown White Plains. The Cappelli Organization plans to redevelop the Galleria alongside the planned $600 million redevelopment of the former White Plains Mall property into another mixed-use project called Hamilton Green.
— Channing Hamilton