The 440,000-square-foot space at 422 Fulton Street in Downtown Brooklyn, recognised as New York City's largest currently available retail block and the former site of a Macy's department store, is set to be transformed into BKX. This was confirmed by the developers to Commercial Observer. BKX is designed as a five-storey retail and entertainment destination and is described by the project stakeholders as a “next-generation cultural and commercial hub”.
The plans for BKX were exclusively shared with Commercial Observer by United American Land, one of the property owners, in collaboration with co-owner Jackson Group and retail brokerage and advisory firm Dreamscape Retail & Entertainment. Dreamscape is leading the redevelopment work and is responsible for tenant recruitment.
Albert Laboz, a principal at United American Land, commented on the project's vision in the announcement. He stated that upon acquisition, they saw an opportunity to reimagine one of New York's most iconic sites for the next generation. Rather than pursuing a traditional retail development, they are creating a destination that reflects how people want to spend their time today – entertainment, dining, retail, and community all under one roof. BKX represents a confidence in Downtown Brooklyn and its future as one of New York City's most dynamic mixed-use neighbourhoods, where people live, work, learn, and discover.
The company describes future tenants as “flagship retailers, entertainment concepts, immersive attractions, dining experiences, and next-generation brands seeking a highly visible urban presence.” Dreamscape’s expertise in experiences and entertainment includes projects at South Street Seaport, including Pier 17; One Wall Street; the Arcade Nashville and Rio Las Vegas, a casino resort. For BKX, the company is collaborating with iCrave, an experience-focused design firm, which has previously completed projects such as the mixed-use TSX Broadway Tower in New York and the entertainment venue Sphere in Las Vegas.
Joshua Strauss, President of Retail and Entertainment at Dreamscape, emphasised that this would be the first project of its kind in New York City. He stated that when the idea was presented to them by the owners, United American Land and Jackson, they thought it was an incredible opportunity to create a branded destination covering 450,000 square feet under one roof, which does not exist in New York. Everyone agreed that if they executed it, it could be iconic from the outset.
The five-storey building features floor plates ranging from 60,000 to 70,000 square feet and ceiling heights of 17.5 to 22.5 feet. Visitors will be greeted at the entrance by a central atrium featuring LED screens, described by United American Land as a “dramatic, shared gathering space designed to be the heart of the destination.” Strauss added that the atrium would attract people, whether they wanted to shop, play, or create Instagrammable moments. There would be theatrical events and programmes, providing a reason for people to visit the property, and this would be crucial for its success.
The opening of BKX is not expected to be a single grand event, but rather a phased launch as individual tenants are ready to open. This is anticipated to occur in approximately 12 to 18 months, according to Scott Zinovoy, Senior Vice President of Retail and Entertainment at Dreamscape, who also highlighted the synergistic benefits for neighbouring businesses. Lease agreements are expected to be announced in the coming months.
The location at 422 Fulton Street has served as a department store since 1885. Originally known as Wechsler & Abraham, the name was changed to Abraham & Straus in 1893 when the Straus family, partners of Macy's, bought out co-founder Joseph Wechsler's share. A merger led to another name change to Macy's in 1995. The Macy's property was acquired in December 2024 by a consortium comprising United American Land, Crown Acquisitions, and the Jackson Group for $23 million, as Commercial Observer previously reported. At around $52 per square foot, this price represented a significant discount compared to the average sale price of $617 per square foot for mixed-use and retail properties in Brooklyn.
