Target Signs 130,000 SF Lease at Cross County in Yonkers
Real Estate In-Depth | October 2020
YONKERS—In a major retail lease deal in the midst of the COVID-19 pandemic, discount retailer Target has signed a long-term lease for more than 130,000 square feet to occupy a major portion of the former Sears store at the Cross County center here.
In addition, shopping center owner Marx Realty also announced that retailer H&M has signed a 10-year lease renewal deal for a 28,000-square-foot store where it will open one of its upscale SOHO concept locations at the former Cross County Shopping Center.
Target signed a 40-year retail lease to occupy more than 130,000 square feet of retail space at what was once home to the most successful Sears store in the nation. The 200,000-square-foot Sears store closed in the fall of last year. The Cross County location will be Target’s first store in the City of Yonkers.
The lease deals come shortly after Marx Realty took over leasing and management of the historic shopping center earlier in the year. The firm has owned the center in partnership with Benenson Capital Partners for 65 years.
This latest leasing activity is the first step in a multi-phase plan for Cross County Center, the property owner stated. Focused on expanding the center’s uses, future phases will bring impactful changes to the iconic open-air center in the heart of Westchester County, the firm noted.
“Residents of Westchester County and the surrounding towns are over the moon to have Target coming to their backyard,” said Craig Deitelzweig, president and CEO of Marx Realty. “As the retail sector emerges from the COVID-19 crisis, we have seen extraordinary foot traffic at the center showing pent-up demand to experience the diverse retail, dining and entertainment offerings.”
“Given how well retailers perform at Cross County Center, we expect this Target store to be among its most successful locations,” said Jim Stifel, chief investment officer of Benenson Capital Partners. “We are also seeing incredible demand from some of the nation’s best retailers who want a presence here and expect several exciting tenant announcements in the coming months.”
Yonkers Mayor Mike Spano along with the city’s Department of Planning Development have been working in tandem with Marx Realty to craft a multi-phase plan to further enrich the ‘town square’ concept, creating safe and healthy spaces punctuated by a beautiful open-air design.
“Yonkers has hit the mark with Target’s plan for a new store at Cross County Center, their first ever in Yonkers,” said Yonkers Mayor Mike Spano. “Target’s decision to invest in our city is a testament to the retailer’s confidence in our thriving economy and our business-friendly environment. We are excited to get Yonkers back to business.”
H&M has had a presence at Cross County Center since 2009 and it has selected the center as their second location for a revamped, cutting-edge SOHO-style concept. The retailer plans to invest $5 million in the location. The first store to embrace the new concept is located in Manhattan.
Marx Realty was represented in-house by Mark Utreras, Target was represented by Jeffrey Howard of Ripco. H&M did not use a broker.
The 1.15-million-square-foot Cross County Center is jointly owned by Marx Realty and Benenson Capital Partners and was the first open-air shopping center to open in the United States. Cross County Center features more than 80 specialty stores and restaurants including Macy’s, Zara, H&M, Pandora, Starbucks, Shake Shack, Hyatt Place Hotel and more. Children’s play areas, free parking and seasonal events draw more than 11 million visitors to the outdoor center, year-round. Marx Realty is currently in talks with the City of Yonkers to discuss the next phase of evolution at Cross County Center.
Marx Realty is a division of Merchants National Properties. Founded in 1915, its current portfolio of properties includes more than 5 million square feet of commercial office, retail and residential space as well as five mixed-use projects currently under development. Marx Realty is vertically integrated and involved in all phases of real estate management, development, construction and leasing. The company’s assets comprise 67 properties in 17 states.
Benenson is a leader among privately held operating companies in real estate investment, development, and asset management. Benenson manages 125 properties including retail, office, industrial, multifamily, hospitality and land throughout the United States, Canada and Europe.