BFC Partners Breaks Ground on Empire Outlets on Staten Island

by Nellie Day

NEW YORK — BFC Partners has broken ground on Empire Outlets, a 340,000-square-foot retail complex with a total of 100 designer outlet stores on the North Shore of New York’s Staten Island. The project will be situated near the Staten Island Ferry Terminal and the Richmond County Bank Ballpark, home of the minor league Staten Island Yankees, in St. George.

The new development will also include a 190-room hotel and a 1,250-space parking garage. The parking structure will be located below the retail and hotel components.

A number of open corridors and pedestrian walkways that lead to the water will also be integrated into the project, which is slated for completion next year. It is being designed by SHoP Architects.

“Empire Outlets is a well-timed catalyst that will trigger the transformation of the North Shore and position Staten Island for sustained growth into the foreseeable future,” says Donald Capoccia, a principal at BFC Partners. “This project will be a dynamic economic engine for New York City, creating more than 1,800 construction and permanent jobs that will benefit its residents, businesses, cultural and community organizations for generations to come.”

Notable retailers that have signed onto the project so far include Nordstrom Rack, H&M, Gap Outlet, Banana Republic Factory Store, White House Black Market, Guess Factory Store, U.S. Polo Assn., Columbia Sportswear Company, Innovation Luggage, Wilsons Leather, G.H. Bass & Co., Lids, Obey Your Body, Starbucks, Walgreens, Ghirardelli Chocolate, Haagen Dazs, Krispy Kreme, Nathan’s Famous and Applebee’s. The project is expected to bring $285 million in private investment to the North Shore of Staten Island, according to BFC.

“The Empire Outlets project provides an enormous breakthrough in the transformation and revitalization of Staten Island,” says New York State Lieutenant Governor Kathy Hochul.

“More importantly, it offers an array of attractions and benefits for hardworking families in the borough and beyond. Finally, the North Shore will have new and affordable shopping opportunities in its own backyard, walkable communities for residents and tourists to roam along the beautiful waters, and state-of-the-art hospitality with the development of a new hotel at Lighthouse Point,” continues Hochul. “New York State is proud to play an integral role in shaping this development and we look forward to continuing this strategic partnership.”

Goldman Sachs provided $130 million of capital for Empire Outlets through its Urban Investment Group. This contribution is part of the firm’s broader commitment to impact investing in New York City.

“Through investments we’ve made throughout New York City to create growth in underserved communities, we’ve seen the impact that providing retail opportunities and community space brings to a neighborhood,” says Margaret Anadu, managing director in the Goldman Sachs Urban Investment Group.

“We’re pleased to have been a part of the Empire Outlets project, the largest public-private partnership in decades that will create jobs and economic growth in Staten Island,” adds Anadu.

BFC Partners has entered into a 99-year lease at the property. The 630-foot New York Wheel, the largest observation wheel in the Western Hemisphere, will break ground adjacent to the Empire Outlets in the near future.”

“This is a great day for Empire Outlets, as they officially break ground on a complex that will generate jobs and help drive the economy of the North Shore of Staten Island, and indeed all of New York City,” says Rich Marin, CEO of the New York Wheel. “We expect to hold our own groundbreaking ceremony very soon, once all of the details for our closing are in place.”

Both parties will pay a total of $2.5 million in annual rent to the city, with additional participation rents once certain ridership and gross revenue milestones are achieved. The developers will also contribute $300,000 per year in contributions to area-wide maintenance, such as upkeep to the waterfront esplanade.

BFC hopes to utilize the New York City Economic Development Corp.’s (NYCEDC) HireNYC program for half of the permanent positions created by Empire Outlets. The firm is also partnering with the wheel’s developer, Lighthouse Point, the Staten Island Yankees, Snug Harbor and the Historic St. George Theater to create a new tourist campaign called “Destination St. George.”

“We have all witnessed many chapters in Staten Island’s history, but none as exciting as what we are embarking on here today,” says Councilmember Debi Rose.

“The Empire Outlets will draw visitors from all over the globe. More importantly, this groundbreaking kicks off a North Shore renaissance that will meet the needs of future generations of Staten Islanders. Along with forthcoming projects and existing anchors that have served us for decades, the Empire Outlets will help give Staten Island’s North Shore a prominent place on every map. This project will bring private investment and jobs to the North Shore, and its economic ripple effects on our neighborhoods and small businesses will be immeasurable,” concludes Rose.

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