Marx Realty Launches $90M Retail Real Estate Expansion at Cross County Center in Yonkers

YONKERS, N.Y. — Marx Realty & Improvement Co is moving forward with a $90 million retail real estate expansion at Cross County Center, the 1.2-million-square-foot open-air shopping center at 8000 Mall Walk in Yonkers, N.Y., adding two new buildings totaling 58,000 square feet of retail space, a four-acre park, a boardwalk, and an underground parking garage to the property's north lot.

The real estate development project, announced in early 2026, is expected to be completed in approximately 18 months. Despite construction being in its early stages, roughly 88% of the new retail space has already been accounted for, according to project officials. Plans are being finalized for a single tenant described as a "world-class retailer" to occupy an entire two-story, 44,000-square-foot building, with a 14,000-square-foot single-story building rounding out the expansion.

A New Front Door for Retail Real Estate Development in Westchester

Craig Deitelzweig, CEO of Marx Realty & Improvement Co, framed the expansion as a transformational moment for the center's identity and its role in the surrounding community.

"We want this to be the town center," Deitelzweig said. "Our goal is to have people who want to come to the center starting in the morning and staying all the way through the evening."

The expansion will replace a portion of the center's north parking lot. An underground parking garage with elevator access will be constructed beneath the site to offset the loss of surface parking. Construction is being carried out in phases to minimize disruption to existing tenants and maintain access to nearby businesses. Architecture firm TPG Architecture is handling design, with landscape architecture by Dirtworks.

The four-acre park is envisioned as an activation hub for year-round programming, including farmers markets, concerts, picnics, and soccer games — building on the center's existing calendar of events such as holiday celebrations, summer festivals, yoga, and Zumba classes.

"I always wanted to add a new park here," Deitelzweig said. "It's another way for us to connect with the community. We'll make sure this space is really activated."

Cross County Center: Hospitality Real Estate, Retail, and Education Under One Roof

Opened in 1954 as what it brands as the nation's first open-air shopping mall, Cross County Center has grown from 30 stores to more than 100 tenants spanning retail, dining, education, entertainment, and hospitality real estate. The center is anchored by Target and Macy's and also includes a Hyatt Place hotel and a SUNY Westchester Yonkers campus, reflecting a diversified tenant base that extends well beyond traditional retail.

The center currently operates at 97% occupancy and draws approximately 14 million visitors annually, primarily from Westchester County and New York City. A large share of visitors is made up of young adults ages 16 to 23 and families, according to the company.

Cross County Center is home to the first Zara, Shake Shack, and Raising Cane's locations in Westchester, as well as what Deitelzweig described as one of the best-performing Target and Macy's stores in the country. Four additional stores are slated to open in the near term, including Coach, Crocs, Crumble Cookies, and Elite Nails & Spa.

Prospective tenants for the expansion include an international fashion brand, an electronics retailer, and several restaurant concepts, officials said.

Westchester Retail Vacancy at 1% Amid Broader Market Pressures

The expansion comes as Westchester County's retail real estate market has tightened considerably. According to data from CoStar, Westchester's mall vacancy rate dropped to 1% in 2024 — well below the national average of 8.7% — even as e-commerce pressures and the pandemic contributed to the closure of the former Galleria at White Plains and the former White Plains Mall.

Cross County Center's near-full occupancy and strong pre-leasing activity for the new space reflect a broader trend favoring open-air, experiential retail formats over enclosed malls. The center's programming-driven approach — including events that generate foot traffic and spillover for neighboring tenants — has contributed to sustained sales growth, Deitelzweig said.

"The way we've succeeded for 70 years is by understanding your customers," Deitelzweig said. "Sometimes it's about understanding them before they even understand what they want."

The shift toward experiential retail has also prompted tenants to lease larger spaces. Build-A-Bear, which opened at the center in September, offers customers an interactive experience of designing their own stuffed animals — a format that requires more square footage than traditional merchandise-focused retail.

Porsha Soto, the Build-A-Bear store manager at Cross County Center, said the location was chosen in part because of the center's strong base of family-oriented customers. "It's really exciting to have this space that feels welcoming and warm," Soto said, referring to the planned park.

Selective Leasing Strategy and Long-Term Real Estate Development Outlook

Marx Realty & Improvement Co has maintained a selective approach to tenant curation at Cross County Center, prioritizing store performance and the overall quality of storefronts. Deitelzweig said the center continues to adapt based on evolving customer preferences, with a focus on attracting trending, high-performing tenants and reinvesting in capital improvements including sidewalks, landscaping, lighting, and storefronts.

Visitor Ive Lisse, of Yonkers, who frequents the center about twice a month, said she enjoys stores such as Old Navy, Zara, H&M, Foot Locker, and Shake Shack and hopes to see more children's entertainment options, such as Sky Zone, added in the future.

Looking ahead, Deitelzweig said Marx Realty is open to residential real estate development at the center if demand warrants it and if it fits within the fabric of the property.

"Customers' desires change constantly," Deitelzweig said. "You always have to be mindful of what customers need."

Marx Realty & Improvement Co, which manages approximately 5 million square feet across 67 properties in 17 states, highlighted the Cross County expansion during a February 24, 2026, Business Council of Westchester roundtable focused on experiential retail transformation.

Sources

Marx Realty — Cross County Center Expansion Details (March 19, 2026)