Empire Outlets’ Anchor Tenant Nordstrom Rack Leaving Staten Island

nordstrom Rack plans to hang it up at the Empire Outlets mall on Staten Island.

After signing on as Empire Outlets’ anchor tenant in 2014, the high-end retailer announced its off-price store at 15 Richmond Terrace will close for business on Dec. 4, right before its lease expires in January, according to a spokesperson from Nordstrom.

The retailer said it has decided to focus on serving customers at its other Nordstrom and Nordstrom Rack locations — which will remain open — after “assessing [its] network of stores in the New York City market,” the spokesperson said.

“Decisions like this are never easy and we understand the impact they have on our team members,” the Nordstrom spokesperson said in a statement. “We’re committed to taking care of our employees as best we can, including finding them other roles within the company.”

Nordstrom added that it has no plans to close its flagship New York City store at 225 West 57th Street and two Nordstrom Rack locations at 60 East 14th Street and 865 Avenue of the Americas.

The news comes after Empire Outlets itself has faced choppy waters, including a nearly two-year foreclosure process and a switch in ownership, according to the Staten Island Advance, which first reported the store closing.

The $360 million, 1.1 million-square-foot shopping center opened next to the St. George Ferry Terminal in 2019 after almost seven years of planning and construction by original owner BFC Partners. It was initially paired with the ill-fated New York Wheel project, a large Ferris wheel that was killed in 2018 after several delays and lawsuits.

Empire Outlets ran into trouble in February 2022, when the property entered into foreclosure by its lenders. The site went up for auction in September 2023, when Goldman Sachs (GS) Urban Investment Group bought the mall for $10 million from BFC, the Advance reported.

“Goldman Sachs is committed to Staten Island and identifying the best outcome for Empire Outlets,” a spokesperson for Goldman Sachs said in a statement at the time of the auction.

And despite leaving Staten Island, Nordstrom boasted a successful year for its Nordstrom Rack locations.

The company said it opened 11 new Nordstrom Rack locations in the spring and plans to open an additional 12 this fall, as “the Rack business is the largest source of new customers,” the spokesperson said.

“Financial results continue to be strong at the Rack banner,” CEO Erik Nordstrom said during the Seattle-based company’s second-quarter earnings call. “Rack stores that were opened last year are performing well, delivering a solid return on investment while attracting new customers.”

It remains to be seen how Empire Outlets will fare without Nordstrom as its prime tenant. The mall is home to 35 other stores, including retailers Banana Republic Factory, Gap Factory and Nike Factory Store, as well as food chains Shake Shack and Nathan’s Famous.

Isabelle Durso can be reached at idurso@commercialobserver.com.