Roosevelt Field mall is one of the largest and most popular shopping centers in Long Island, New York. Located in Garden City, the mall has over 270 stores, restaurants, and entertainment options that attract millions of shoppers each year. But who actually owns and operates this massive retail complex? Let’s take a closer look at the ownership and history of Roosevelt Field mall.
Original Owners and Opening
Roosevelt Field mall first opened its doors in 1956 and was originally developed by the Roosevelt Field Inc. company. The mall was built on the site of the former Roosevelt Field airport and aimed to provide a large suburban shopping destination for residents of Long Island and the New York City metro area.
The original Roosevelt Field mall spanned 800,000 square feet and was anchored by major department stores at the time like Macy’s, Gimbel’s, and Abraham & Straus. Ownership of the mall was shared between the Beneficial Finance Company, the prudential insurance company, and a number of other investors who came together to finance and develop the project in the booming post-war suburban expansion.
Acquisition by Simon Property Group
In 1996, Roosevelt Field underwent a major change in ownership and management. The national retail real estate company Simon Property Group acquired the mall that year for $203 million. Simon Property Group is one of the largest real estate investment trusts and shopping mall operators in the U.S., owning major malls and shopping centers across the country.
Under Simon’s ownership, Roosevelt Field embarked on major renovations and expansions. In 1997, the mall added a second story and increased leasable space to nearly 1.6 million square feet with the addition of new anchor stores like Lord & Taylor. Further renovations and expansions in the 2000s brought the mall to over 2 million square feet, cementing it as one of the largest malls in the New York metropolitan area.
Current Status and Ownership
Today, Roosevelt Field remains owned and managed by the Simon Property Group. Simon owns 100% interest in the mall after acquiring the remaining stake from its joint venture partner, the Forbes Company, in 2009.
As of 2023, Roosevelt Field mall spans 2.8 million square feet and contains over 270 stores and restaurants. Key current anchor stores include Nordstrom, Macy’s, Bloomingdale’s, Neiman Marcus, Dick’s Sporting Goods, and JCPenney. Luxury brands and upscale dining options are also heavily featured.
The mall continues to be a major retail destination, attracting around 20 million visitors annually and producing over $1 billion in estimated sales each year. Under Simon Property Group’s ownership and management, Roosevelt Field has cemented its status as one of the most successful malls in America.
Simon Property Group Overview
Here is some additional background on Simon Property Group and its role as the owner and operator of Roosevelt Field:
- Simon Property Group is an S&P 100 company based in Indianapolis. It is the largest real estate investment trust in the United States.
- The company owns, manages, or has an interest in over 200 retail properties covering over 190 million square feet across North America, Europe, and Asia.
- In the U.S. alone, Simon owns interest in around 100 shopping malls, outlet centers, and open-air shopping centers.
- Other major malls owned by Simon include King of Prussia in Pennsylvania, Forum Shops at Caesars in Las Vegas, and Woodbury Common Premium Outlets near New York City.
- Forbes lists Simon Property Group as the largest shopping mall operator in the U.S. The company’s malls account for around a third of all malls in the country.
- Roosevelt Field is one of Simon’s highest sales-volume properties. It is the company’s largest individual asset on Long Island.
As a publicly traded real estate investment trust (REIT), Simon Property Group owns, develops, and manages retail real estate across North America, Asia, and Europe. Its network of high-profile malls and shopping centers, including Roosevelt Field, has made it into one of the most recognizable brands in retail real estate.
History and Timeline of Roosevelt Field Mall
Here is a more detailed timeline showing the history and major developments of Roosevelt Field mall over the decades:
Year | Event |
---|---|
1929 | Roosevelt Field airport opens on site |
1951 | Airport closes as larger airports make it obsolete |
1955 | Plans announced for shopping mall on former airport site |
1956 | Roosevelt Field mall opens with 60 stores and 4 major anchors |
1961 | Mall expands to include Macy’s as 5th anchor store |
1970s-80s | Mall stagnates as enclosed malls grow nationwide |
1986 | Renovations begin to enclose the formerly open-air mall |
1996 | Simon Property Group acquires mall for $203 million |
1997 | Major expansion completed, including new Lord & Taylor anchor |
2001 | Another expansion brings size to over 2 million square feet |
2009 | Simon acquires remaining 50% stake, gains full ownership |
2012 | Neiman Marcus opens as 6th anchor store |
2015 | New dining plaza and amenities completed |
2019 | Nordstrom added as 7th anchor store |
2023 | Roosevelt Field totals 2.8 million square feet and 270+ stores |
As shown in the timeline, Roosevelt Field has undergone major expansions and renovations over its 60+ year history. Its acquisition by retail giant Simon Property Group in the 1990s kicked off a new era of growth for the mall into one of the country’s premier shopping destinations.
Financial Performance and Valuation
In addition to its large size and extensive amenities, Roosevelt Field is one of Simon Property Group’s top-performing retail assets:
- Annual sales at Roosevelt Field are estimated at over $1 billion per year currently.
- Typical sales per square foot are around $900, exceeding the average Simon mall.
- Roosevelt Field contributes significantly to Simon’s funds from operations (FFO) and dividend payments to shareholders.
- Occupancy rates at the mall consistently top 95%, higher than many competing malls.
- The property was appraised at $2.3 billion in 2019, up from $203 million upon acquisition in 1996.
- Roosevelt Field accounts for around 3-4% of Simon’s total net operating income (NOI).
The high sales volumes and strong financial metrics have driven up Roosevelt Field’s valuation substantially in Simon’s portfolio. The mall is seen as a trophy asset and remains a key contributor to the company’s industry-leading performance among retail REITs.
Challenges Facing Shopping Malls
Despite Roosevelt Field’s continued success, traditional enclosed shopping malls are facing challenges in today’s retail landscape:
- E-commerce continues to take share from brick-and-mortar stores, making it harder to sustain high sales.
- Anchor department stores are struggling, with chains like Sears going bankrupt.
- Some weaker malls are failing as traffic declines, known as the “retail apocalypse.”
- Major new mixed-use developments provide stiffer competition to older malls.
- Changing consumer preferences toward experiences, dining, and entertainment over pure shopping.
However, Roosevelt Field remains well-positioned to weather these industry challenges under Simon’s management. Investments in the tenant mix, amenities, events, and physical space have maintained the mall’s draw and sales productivity in the face of retail headwinds. But adapting to constantly shifting consumer demand will be an ongoing focus for any owner.
Benefits of Scale in Mall Ownership
Owning a diversified portfolio with hundreds of mall properties helps Simon Property Group manage risk and operate more efficiently, including at Roosevelt Field. Key benefits of the company’s scale include:
- Spreading costs across properties for common services, marketing, technology.
- Leveraging data across the portfolio to inform leasing, pricing, tenant mix decisions.
- Access to capital and ability to fund ongoing reinvestment.
- More negotiating power with retailers on rents and lease terms.
- Mitigating impact of underperformance at individual properties.
- Enhanced ability to implement innovation and new retail concepts.
Roosevelt Field gains important advantages from being part of Simon’s mall network. The company’s size and capabilities have enabled the property to thrive even as many competing malls struggle in the current environment.
Role of Malls in Retail’s Future
There is much debate around the future role of traditional malls and whether the format will remain viable long term. Opinions on shopping malls range from:
- Pessimistic: Most malls will fail or shrink dramatically as e-commerce keeps taking share.
- Optimistic: Top malls in good locations will continue to prosper as “lifestyle centers” with reinvented tenant mixes.
- Mixed: Lower-quality malls will die off, mid-tier malls will struggle, but “A” malls like Roosevelt Field will adapt and perform well.
Under Simon’s leadership, Roosevelt Field appears poised to remain in the top tier of performers and survive the ongoing retail shakeout. However, adapting to meet consumers’ evolving needs via technology, experiences, and convenience will determine which malls thrive versus just survive.
Implications of Ownership Change
Although unlikely in the near term, a future change in ownership of Roosevelt Field could have significant implications, including:
- Potential for new capital investments or strategy shift if sold to a different REIT or investor.
- Risk of decline or neglect if purchased by an owner lacking retail expertise or scale.
- Loss of synergies with Simon’s broader mall portfolio and centralized resources.
- Sale price would depend on economic conditions and retail outlook at time of sale.
- Simon would lose a flagship mall asset and 3-4% of its earnings if Roosevelt Field was sold.
- Disruption and uncertainty for mall management, employees, tenants, and shoppers during any transition.
Overall, Simon is seen as an experienced, capable, and committed long-term owner for Roosevelt Field. Change could bring upside but also significant risk compared to continued ownership by the incumbent operator.
Conclusion
Roosevelt Field retains its position as Long Island’s premier shopping destination six decades after first opening its doors. The mall owes its continued success and evolution to Simon Property Group, which has demonstrated the benefits of professional retail management at scale. Simon’s network effects, capital strength, and real estate acumen have kept Roosevelt Field thriving amid challenging industry conditions. Looking ahead, the mall appears well-positioned to retain its leadership in the market, especially with the ongoing support and expertise of its experienced owner.