HAMBURG, N.Y. (WBEN) – The new owner of the McKinley Mall in Hamburg plans to keep it as a mall.
"We're not trying to redevelop the site because we're not developers," Mike Kohan, CEO of the Nassau County-based Kohan Retail Investment Group, said. "We're just trying to add more traffic into the malls so the rest of the tenants who are suffering from reduced traffic will stabilize."
Still, Kohan said the mall will not be 100% retail, saying it's impossible these days as many national companies are switching to online marketplaces.
"If you think outside the box, think about getting some entertainment into the malls," he said. "Kids are going to come in with the parents. When the kids are playing in the entertainment part, parents are going to shop. They're going to go to a food court and eat."
Kohan also suggested turning vacant storefronts into call centers with 200 to 300 employees. During their lunch breaks, they could visit the food court and even shop after work.
Kohan purchased the site for $8.5 million and defeated the Town of Hamburg and Benderson Development in court on Thursday over their objections of the sale. The retail group owns more than 40 malls nationwide, including many in Florida, Texas, Michigan, and other states. They own two malls in New York: Great Northern Mall in Clay and The Gallivant Times Square in New York City.
Despite the litigation efforts, Hamburg Town Supervisor Jim Shaw said he is looking forward to working with the mall on future plans.
"We're creating an opportunity to reinvent the mall," he said. "To bring it back to life. Resuscitation is long overdue here. Hopefully we can work with the Kohan group to make the long-term health of the mall a top priority."
While some may be wary of a Downstate investor purchasing the property in Western New York, Kohan said he plans to invest in it.
"I don't see anyone in their right mind who would come in and put $8.5 million in a property who would neglect it in the future," Kohan said. "In order to protect my investors and investments, I have to do something for the property to be upkept and upgraded in many ways."
Kohan also said if he were to neglect the property, it would affect his relationships with tenants who he has worked with at his other malls.
"I cannot put them down," Kohan said.
