Distressed Sun Vet Mall heads for redevelopment with new leaseholder

The mostly vacant Sun Vet Mall in Holbrook now has a new developer. 

Syosset-based Blumenfeld Development Group has inked a 99-year ground lease for the sprawling 270,000-square-foot retail complex on 18 acres at 5801 Sunrise Highway. 

Terms of the ground-lease deal were not disclosed. 

Built about half a century ago, the Sun Vet Mall has fallen on hard times in recent years. Formerly anchored by a 60,000-square-foot Pathmark supermarket and a 100,000-square-foot Toys-R-Us, the two big-box stores that flank the mall have been vacant for a while. 

The 110,000-square-foot interior portion of the mall, which was once home to 30 retail tenants, has just a handful of tenants remaining that occupy less than 10,000 square feet. All in all, the mall’s current occupancy rate is a paltry 10 percent. 

BDG, the property’s new leaseholder, plans to redevelop the property so the retail complex can be “de-malled,” repositioned and made more attractive to new tenants. 

“We will be meeting with town officials in the near future to determine how we’re going to proceed in the redevelopment,” said Jon Cohen, a BDG principal. 

BDG has been an active developer in the New York metropolitan area, with projects that include entertainment-based retail, multi-tenant office, medical office, industrial and multifamily-residential developments. 

The company’s largest retail project on Long Island was the transformation of 80 acres of industrial property in Deer Park that became the 800,000-square-foot retail and entertainment complex called the Tanger Outlets at the Arches.  

BDG signed the Sun Vet Mall ground lease with Marvin L. Lindner Associates, an affiliate of the Estate of Marvin L. Lindner, which is listed as the owner of the Holbrook property. 

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