Westfield Corporation is considering ending its lease at Fulton Center with the MTA, citing crime and security issues as reasons for driving away retail tenants. However, the shopping atrium at Broadway and Fulton Street has struggled to attract shoppers since its opening in 2014, well before the recent increase in crime. Unibail-Rodamco-Westfield, the parent company, announced plans in 2022 to sell most or all of its US shopping centers, with the Fulton Center’s challenges aligning with this strategy.
Retail experts, preferring to remain anonymous, criticized Westfield’s approach to leasing stores at Fulton from the start. This criticism extends to Westfield’s larger retail spaces at the World Trade Center, including the Oculus and surrounding office towers, where many shops remain empty. The company’s decision not to work with local retail brokers has hindered its ability to attract a diverse range of stores to Fulton.
A significant portion of what is known as Level 2, one of the four floors in the building, has been empty since it opened. The only major retail tenant is Shake Shack, with the remaining spaces occupied by fast-food outlets such as Krispy Kreme and Auntie Anne’s, reminiscent of a suburban mall food court.
Despite the challenges in the retail sector, Westfield has found a lucrative opportunity with Industrious, a flexible workspace provider. In 2022, Industrious partnered with Westfield to occupy 50,000 square feet, which is more than the combined space of all the stores. However, when attempting to visit Industrious’ fourth-floor space, employees tried to prevent access to the public area outside their door, raising questions about what might be concealed there.
Casa Cipriani, a highly sought-after private club and boutique hotel, is perched above the historic Battery Maritime building with stunning views of New York Harbor. The owners, including Cipriani, Midtown Equities, and Centaur Properties, recently secured a $103 million refinancing for the property, which opened its doors in 2021. The refinancing was arranged by Walker & Dunlop through a CMBS loan provided by Citigroup, JPMorgan, and Argentic, replacing a previous short-term, variable rate loan. The team at W&D New York Capital Markets, led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, and Sean Bastian, played a pivotal role in securing this long-term fixed-rate loan.