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Tuesday, January 13, 2015

WSJ - Bed Bath & Beyond Takes Sunset Park

Excerpt -

Bed Bath & Beyond Inc. has signed a lease to take more than 100,000 square feet at Liberty View Industrial Plaza, a technology and industrial complex in the Brooklyn neighborhood of Sunset Park, said an executive with the real-estate firm that represented the building owner in the deal. 

The home-furnishings retailer plans to place four of its stores on the building’s second floor: Bed Bath & Beyond; buybuy BABY; Cost Plus World Market; and Harmon Face Values. 

“They are going to be bringing a whole new center of retail gravity to this part of the world,” said Tim King, managing partner of CPEX Real Estate Services LLC, located in Brooklyn.

The lease deal represents a milestone for the building’s owner, Salmar Properties LLC. The firm has spent about $100 million over the last 2½ years to overhaul the long-vacant industrial loft, which was built in 1918.

“Bed Bath & Beyond originally wanted just one store but then started to realize they could create a new experience in the building,” said Marvin Schein, managing member of Salmar.

Such a large project by a major retailer will boost property values in the area and lure other types of shops into the neighborhood, Mr. King said. He said he expects Bed Bath & Beyond’s four-store concept to draw shoppers from the entire borough. The complex has a parking lot that takes up an entire block adjoining the building.

Brooklyn’s popularity and the many residential developments that have sprung up over the last several years have helped boost the borough’s retail corridors. 

A 2014 CPEX retail report identified 43 additional retail corridors in Brooklyn, bringing the total number to 88. Of those 88 retail districts, 10 corridors had retail rents over $100 a square foot compared with just two corridors five years ago.

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