United American Land Plans 440,000-Square-Foot BKX Entertainment Hub at Former Macy's in Downtown Brooklyn

A former Macy's building in Downtown Brooklyn could soon become a hub for experiential retail tenants. Albert Laboz, principal at developer United American Land, discussed his vision for BKX, a five-story, 440,000-square-foot entertainment complex planned for 422 Fulton St., during TerraCRG's Only Brooklyn conference on Thursday.

Laboz also unveiled renderings for the development. BKX was designed by Lionel Ohayon, the architect behind Las Vegas entertainment venue The Sphere, which is owned by New York Knicks owner James Dolan.

BKX Project Details at 422 Fulton St.

BKX is planned for the former Macy's retail space at 422 Fulton St., between Hoyt Street and Gallatin Place in Downtown Brooklyn. The project would span approximately 440,000 square feet across five levels, with floor plates of roughly 60,000 to 70,000 square feet and ceiling heights of about 17.5 to 22.5 feet.

The planned program includes flagship retail, immersive attractions, restaurants, food halls, hospitality, wellness, cultural programming and large-format branded experiences. A central atrium with LED screens is intended to serve as a shared gathering space and visual focal point.

Dreamscape Retail & Entertainment is leading conversion efforts and tenant recruitment, and iCrave is involved in experiential design. Marketing and leasing are underway. The project team describes the 440,000-square-foot block as the largest contiguous retail space currently available in New York City.

United American Land and Partners' Acquisition

The retail property was acquired in December 2024 by a consortium involving United American Land, Crown Acquisitions and The Jackson Group for a reported $23 million, or roughly $52 per square foot based on 440,000 square feet. Separate reporting indicated the property was later transferred to the Laboz and Chehebar groups for approximately $36 million, a figure Laboz did not confirm. At that price, the implied basis would be about $82 per square foot.

Relationship to The Wheeler Office Tower

BKX concerns only the former Macy's retail component of a larger building. Tishman Speyer acquired the upper portion from Macy's in 2015 and added a 10-story office component known as The Wheeler above the historic department-store structure. The overall building has been reported at approximately 838,000 square feet, including about 622,000 square feet of Class A office space. The office portion was refinanced with a reported $301 million loan in 2024.

Why Downtown Brooklyn Retail Is Being Reimagined

The project follows Macy's decision to close its Downtown Brooklyn location as part of a broader store-reduction strategy, leaving a large contiguous retail block available. Traditional department-store demand has weakened, and landlords have increasingly sought destination-oriented concepts.

BKX's floor plates and ceiling heights give the owners flexibility to pursue tenants needing far more space than conventional storefront retailers, including entertainment operators, food halls, immersive attractions and flagship brands. The emphasis on atrium-based, photo-friendly spaces is designed to increase dwell time and position the property as a destination. The scale may attract major operators seeking a prominent urban location, though few tenants can absorb tens of thousands of square feet without substantial customization.

The site is near multiple subway stations serving the 2, 3, 4, 5, A, C, B, D, N, Q and R lines, with Long Island Rail Road access at Atlantic Terminal, and sits within the Fulton Mall retail corridor. The Wheeler was developed amid a significant increase in Class A office supply in Brooklyn; BKX instead relies on a leisure- and experience-driven demand thesis rather than daily office occupancy or traditional department-store sales.

Outlook for the BKX Redevelopment

With leasing underway, the next milestones for United American Land and its partners will include tenant commitments for the five-level complex at 422 Fulton St. The project is a commercial redevelopment, and no residential units are planned.

Sources

• TerraCRG press page: Planned Downtown Brooklyn entertainment hub promises Instagram moments and a refuge for rainy days | Crain's