Albert Laboz, a prominent New York retail landlord, is spearheading an effort to transform Downtown Brooklyn's Fulton Street into a vibrant retail and entertainment destination. With the former Macy's building at 422 Fulton Street as the centerpiece, Laboz and the Chehebar family's Jackson Group are developing BKX, a 440,000-square-foot complex designed by the firm behind the Las Vegas Sphere's interior.
The project aims to fill the void left by Macy's, which closed last year after decades as a retail anchor. BKX will feature a roughly 90-foot-high central atrium with LED screens and an escalator, and will host eight to 10 tenants, including a wellness and fitness concept, restaurants, a market, toy brands, and an entertainment concept with bowling, an arcade, and food and beverage. Laboz envisions it as a hybrid between a shopping center and an indoor amusement park, creating a sense of place for Instagram moments.
Laboz's connection to Fulton Street runs deep. He visited the corridor with his mother in the 1960s when Abraham & Straus anchored the area, though he admits he hated those trips. Over the years, Fulton Street devolved into a chaotic mix of discount shops and fast-food joints. The former A&S building became Macy's in 1995 and operated until last year, when it shuttered as part of a broader restructuring. The lower floors had been vacant since the building's 1930 grand opening.
In a timely move, Isaac Chera of Crown Acquisitions purchased the property from Macy's for $23 million and then sold it to Laboz and the Chehebars. While the New York Post reported a $36 million price, Laboz declined to confirm. The building's 60,000- to 70,000-square-foot floorplates offer ample contiguous space to attract major brands, a key advantage over smaller landlords along Fulton.
Laboz compares BKX to American Dream, the New Jersey megamall, but aims for a smaller, more Brooklyn-centric concept. He has also invested $107 million to assemble an 18-lot site on the block bounded by Jay, Fulton, Lawrence, and Willoughby streets, which he plans to develop into a residential project that could feed foot traffic to BKX.
The neighborhood's retail landscape has seen a test case in City Point, a 1.8-million-square-foot mixed-use development that opened in 2016. Anchored by Primark, Target, Trader Joe's, and Alamo Drafthouse, City Point has become a draw for locals, with DeKalb Market Hall generating over $30 million annually. Paul Travis of Washington Square Partners, a partner in City Point, recalls the difficulty of persuading retailers to bet on Downtown Brooklyn, but the project's success has shifted perceptions.
Since the 2004 rezoning, Downtown Brooklyn has added more than 28,000 housing units, according to the Downtown Brooklyn Partnership, bringing new residents and disposable income. City Point's sales have grown about 10 percent annually, and weekends are bustling with families. Recent openings like Lululemon and Sephora signal growing confidence, though the area may not attract luxury brands like Chanel Beauty, which opened in Williamsburg in 2023, anytime soon.
Laboz acknowledges the high stakes: 'We feel a tremendous responsibility because all eyes are on us. I think whatever we're gonna do will set the tone for the whole Downtown Brooklyn and Fulton Street.'
