T
he departure of Nordstrom Rack from the Empire Outlets on Staten Island is yet another setback for the struggling shopping mall. The offshoot of the renowned department store chain had been one of the mall's anchor tenants since its opening less than a decade ago. The store will close its doors on December 4, just ahead of its lease expiration the following month.

    Nordstrom Rack had signed on as a future tenant of the mall back in 2014, when the property was still under construction. The company's decision to leave comes as no surprise, given the mall's history of problems since its opening. Despite its impressive size - a whopping 1.1 million square feet - and a $360 million price tag, the mall has struggled to attract tenants and shoppers alike.

    The mall's ownership has changed hands multiple times over the years. Most recently, senior lender Goldman Sachs Urban Investment Group bought the property at a foreclosure auction for just $10 million, marking the end of BFC Partners' ownership. Grinberg Management also placed bids during the auction, but Goldman's position as the mall's largest creditor made it the likely winner.

    Work on New York City's first outlet mall began in 2015, but several construction delays pushed back its planned opening to 2019 - just in time for the COVID-19 pandemic to hit, further decimating the mall's prospects. Eleven tenants quickly bailed, leaving a staggering 50,000 square feet vacant.

    The mall's troubles were compounded when plans for a major tourist attraction next door - a project called the New York Wheel - fell through. BFC Partners began missing debt payments to the New York City Economic Development Corporation in mid-2020, setting the stage for foreclosure two years later.

    In summary, the departure of Nordstrom Rack from the Empire Outlets on Staten Island is yet another setback for the struggling mall. Despite its impressive size and price tag, the mall has struggled to attract tenants and shoppers alike, leading to multiple changes in ownership and a foreclosure auction won by Goldman Sachs Urban Investment Group. The mall's future remains uncertain as it continues to grapple with financial difficulties and vacancies.