Acadia Doubles Redevelopment

BRONX, NY-In a conference call, White Plains-based Acadia Realty Trust said development costs for a redevelopment here at 400 East Fordham Road here have blossomed to between $60 and $70 million, instead of the $35 to $40 million originally estimated for the effort, which is part of the firm’s urban infill concentration. The company is also in negotiations for two additional sites in the city.

“There is strong tenant demand,” said Kenneth F. Bernstein, Acadia’s president and CEO. “National retailers are underrepresented here.” The footprint will be larger and the scope expanded. The company is in negotiations for two more redevelopment projects, one in Northern Manhattan and the other in Brooklyn. “We’re building a nice pipeline for future growth,” Bernstein continued. These projects are expected cost approximately $100 million, as well. Its second project is a $30 to $35 million effort in Pelham Manor, NY. The company entered into a 95-year ground lease for a 16-acre site which will be redeveloped into a multi-anchor community retail center.

The site at 400 East Fordham Rd. here that is currently home to a Sears, whose lease expires in 2007. Sears has been in the site near Fordham University for 40 years. According to New York City statistics, Fordham Road is the strongest retail area in the borough and is the third largest retail corridor in all of New York City, with over 650,000 people in a two-mile radius and annual retail sales in excess of $500 million.