The Albee Square Mall is expected to be razed after the property was sold last week for about $125 million. Sources confirmed that Thor Equities sold the remaining portion of their 70-year lease to Acadia Realty Trust and its development partner P/A Associates. The city owns the land beneath the mall and will get a cut of the sale price. Both Thor Equities and the Downtown Brooklyn Partnership, the latter which serves as a conduit for the city regarding development in the area, refused comment. The property is divided into two parts. The retail gallery is part of the Fulton Street Mall where Dekalb Avenue and Fulton Street intersect, and the property extends as a parking lot at Willoughby Street just off Flatbush Avenue. Thor reportedly purchased the complex for $25 million in 2001, and then made some renovations over the last few years before deciding to sell the property. We did what we said we were going to do. We redeveloped it. Brought in some great tenants and upgraded the mall. Everyone in the neighborhood has been happy. Weve gotten good reviews, said Thor Equities Principal Joe Sitt in an exclusive Courier-Life interview last December. In real estate technology thats what we do for a living. We buy, we fix, we build and eventually we have to sell so we can return the profits to our investors, he added. The deal comes about three years after the city rezoned downtown Brooklyn, anticipating it could become an even bigger commercial hub. The new zoning reportedly allows for up to 1.4 million square-feet of construction. However, with the market constantly fluctuating, there have not yet been the inquiries the city had hoped for with regards to commercial activity. We have a deal in principle that would pave the way for a mixed-use complex with commercial, residential and retail space that will play a key role in the growing vibrancy of Downtown Brooklyn, said Andrew Brent, spokesperson for the the citys Economic Development Corporation (EDC). The deal is pending final public approval, he added. Brent also said several months ago when rumors were published of the impending sale that there will be an affordable housing component to the project.
©2007 Community News Group
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