Former Downtown Brooklyn Macy’s Slated for Dramatic Retail Makeover

The 440,000-square-foot space at Downtown Brooklyn’s 422 Fulton Street — the largest block of retail space currently available in New York City and the former site of a Macy’s department store — will become BKX, a five-floor retail and amusement destination that’s being described by developers as a “next-generation cultural and commercial hub,” Commercial Observer has learned.

Plans for BKX were shared exclusively with Commercial Observer by one of the property’s owners, United American Land, in conjunction with co-owner the Jackson Group and retail brokerage and consultancy Dreamscape Retail & Entertainment, which is spearheading the conversion efforts, including tenant recruitment.  

“When we acquired this property, we saw an opportunity to reimagine one of New York’s most iconic sites for the next generation,” Albert Laboz, a principal of United American Land, said in the announcement. “Rather than pursuing a traditional retail redevelopment, we’re creating a destination that reflects how people want to spend time today — bringing together entertainment, dining, retail and community under one roof. BKX represents our belief in Downtown Brooklyn and its future as one of New York City’s most dynamic mixed-use neighborhoods, where people come to live, work, learn and explore.”

The company described the type of tenants the building will house as “flagship retailers, entertainment concepts, immersive attractions, food and beverage experiences and next-generation brands seeking a highly visible urban presence.”

Dreamscape’s experiential and entertainment roster includes projects at South Street Seaport, including Pier 17; One Wall Street; the Arcade Nashville; and Rio Las Vegas, a casino resort. The company is working on BKX with experiential design firm iCrave, which has worked on projects such as the TSX Broadway mixed-use tower in New York and the Sphere entertainment venue in Las Vegas.

The project will be the first of its kind in New York City, said Joshua Strauss, president of retail and entertainment at Dreamscape.

“When we were brought the idea by the owners, United American Land and Jackson, we thought, ‘Wow! What an incredible opportunity to create a branded destination in 450,000 square feet all under one roof, which doesn’t exist in New York,’” said Strauss. “We all agreed that this is something that could be iconic out of the gate if we execute on it.”

Scott Zinovoy, senior vice president of retail and entertainment at Dreamscape, also noted that this structure increases opportunities for neighboring businesses.

“Within 450,000 square feet under one roof, one owner can decide how to bring in the right tenants to fit this project scope,” said Zinovoy. “We can bring in groups that are synergistic with each other — that don’t directly compete with each other.”

Zinovoy noted the stark contrast between this and the scenario in a more traditional entertainment and retail neighborhood in New York City.

“Look at Times Square, for example, where some of these groups have historically gone,” said Zinovoy. “There’s nothing stopping a tenant that’s directly competing with you from coming into the building next door or right across the street if it’s owned by a different landlord. Here, we have the ability to curate and bring together the right mix of tenants under the BKX umbrella.” 

The five-story property is also distinguished by 60,000- to 70,000-square-foot floor plates, and ceiling heights ranging from 17.5 to 22.5 feet high.

Visitors to the site will be greeted at the entrance by a central atrium featuring LED screens and described by United American Land as “a dramatic shared gathering space envisioned as the heart of the destination.”

“That atrium is going to draw people in whether they want to shop or play or create Instagrammable moments,” said Strauss. “We’ll have theatrical events and programming in that space. It’s going to be a reason for people to come to the property, and it’s critical to the success of this property.”

Strauss also said that the tenants they hope to sign include traditional large-format retail to include a wellness or fitness facility in addition to food & beverage and immersive attractions.

While no lease deals have yet been announced, Strauss told Commercial Observer that negotiations with potential tenants are proceeding apace.

“We’re very far along in negotiations with tenants for about half of the project right now,” said Strauss.

Zinovoy said that rather than having one central grand opening, BKX will be introduced to the public as tenants are individually ready to open, most likely beginning around a year to 18 months from now. They plan to announce tenants as their leases are signed, hopefully beginning within the next few months.

The site at 422 Fulton Street had served as a department store since 1885. Originally called Wechsler & Abraham, the store’s name was changed to Abraham & Straus in 1893 when the Straus family, partners in Macy’s, bought out co-founder Joseph Wechsler’s share. The name was changed again due to a merger, this time to Macy’s, in 1995.     

The Macy’s site was acquired in December 2024 by a consortium of United American Land, Crown Acquisitions and the Jackson Group for $23 million, as Commercial Observer previously reported. At around $52 per square foot, that price marked a steep discount on the property from Brooklyn’s average sales price of $617 per square foot for mixed-use and retail properties as of the first half of 2024. 

(The remainder of 422 Fulton Street, which consists of 10 floors of office space upstairs from the retail site, is owned by Tishman Speyer, and is completely separate from the former Macy’s property.)

The deal came at a rough time for Macy’s, which had announced in February 2024 the closure of 150 of its then 502 stores, saying that the stores in question represented 25 percent of the company’s square footage but only 10 percent of its sales. The company said it expected to see $275 million from the sale of retail properties in 2025.  

Macy’s made the closure of the Downtown Brooklyn location official in January 2025, and the store closed for good two months later. 

Area residents and shoppers got a taste of the site’s potential future in January 2026, when the former Macy’s building hosted an interactive light installation called “In Every Transition, a Pattern.”

Presented by the Downtown Brooklyn Partnership, the city’s Department of Small Business Services and Masary Studios, the exhibit, which ran until March, displayed “rhythmic patterns of light, driven by audio recordings of the Downtown Brooklyn environment” through the building’s windows, according to a release from the organizers.

While it’s still unknown what exactly BKX will feature, its creators say they hope to bring exactly that sort of creative energy to a spot that will ultimately bring different types of entertainment and leisure in a one-of-a-kind presentation to Downtown Brooklyn.   

“Most tenants would like to ideally be in a project that feels like it’s bigger than themselves, that has a sense of place, and that feels like it has intention, which is what we’re striving to do here,” said Zinovoy.

Larry Getlen can be reached at lgetlen@commercialobserver.com.