Prime real estate. (Google Maps)

The Meatpacking District is now as dead as the cattle carcasses that once poured blood onto its cobblestone streets. The last independent meat supplier in a neighborhood that once has more than 200 has moved into a city-controlled co-op in the neighborhood, the last redoubt of steaks and chops in the area. Weischel Beef is being replaced with—yep—more high-end retail, according to The Real Deal.

There are still nine operators left slinging meat the old fashioned way, but they are now all penned in like poor veal cows on a city-controlled site on Little West 12th Street between Washington and West streets. Weischel Beef had been just down the block at 525 Washington Street.

A former refrigeration building, Rockrose Development bought 525 Washington in the 1980s and turned it into apartments last decade. It put retail in part of the building but found the West Street frontage too challenging to convert. But now that Weischel’s lease is up, it is time to let the boutiques feast—if in the wrapper of the neighborhood's historic character.

“We are going to take down the loading dock and restore the façade and keep the [awning] and keep the cast iron, to make it similar to the retail at Intermix,” which is at street level, Thomas Elghanayan, chairman of TF Cornerstone, told The Real Deal. His firm, which is a successor to Rockrose, turned a similar trick at 810 Washington Street, where Intermix and other luxury brands are located inside an old meatpacking building.

Sam Farella, owner of Weischel, holds out hope that there is still room for his kind in the neighborhood, on the city-owned land. “I think it is stable now. I hope so,” Farella told The Real Deal. “We’ve had enough change in the last 20 years. We never thought there would be apartments above us.”

But how long before the city thinks it can put the co-op to a “better and higher use” as well, in the parlance of the development industry.

We might as well take to calling this the Shoppingbag District. Or has Soho already claimed that title?

Uptown becomes more downmarket.

Once upon a time, different kinds of shops existed in different neighborhoods, catering to the different people who lived in those neighborhoods. Quaint, right? But that was then and this is now. And now every corner of Manhattan has been pretty thoroughly colonized, and homogenized, by upscale chain stores.

The transformation doesn't only happen to formerly-gritty, formerly-edgy neighborhoods, either. The New York Times reports that Madison Avenue is the latest location to undergo such delightful changes—changes that have helped the street shake off its post-recession malaise at the same time that retailers like Juicy Couture and J.Crew are not exactly brands that the most insular and upscale of all Manhattan shopping districts would have originally welcomed with open arms.

The changes are attracting a younger, less affluent crowd to the Upper East Side stretch—The Times notes that the strip that once mixed the poshest of stores with a smattering of cheap diners now includes a more diverse range of brands—albeit the diverse range of brands that can be found in just about every shopping district below 96th Street these days.

Nearly 50 stores have opened in the last 18 months, among them Tory Burch, Bottega Veneta, Alice + Olivia, Theory, Rag & Bone and Proenza Schouler.

The area is also benefiting from the arrival of boutiques that are fleeing the meatpacking district. Last month, Yigal Azrouël announced that he was leaving his flagship store in the Meatpacking District for a 1,800 square foot storefront on the Upper East Side. After all, once Patagonia moves in and Lululemon stakes out a spot (Azrouël's old spot, in fact), what's the point of even pretending that the Meatpacking District is edgy anymore?

It's only a matter of time before Madison Avenue turns into Soho: a tourist district of upper-middle class chain stores clogged with shoppers hell-bent on promenading three abreast and as slow as possible down the sidewalk.

“You can now buy a piece of art, some shoes and a panini,” LeAnn Nealz, the president of Juicy Couture told The Times. “It’s nice having old world New York mixed with some of these younger, hipper brands.”

And isn't that the new American dream? A panini place in every neighborhood?

kvelsey@observer.com

Ready to party. (Max Carr)

An expressive guy. (Getty)

Much has been made of the Fulton Mall's transformation over the past few years (not least in these pages). New shops, new sweets, new people. No one knows this better than Michael Weiss, the CEO of Express. Sure, the career garmento with slicked back white hair and severe glasses likes the location for his newest outlet, set to open this evening with a big block party outside the new store at 490 Fulton Street.

But his love for the strip goes back much farther than that. Mr. Weiss' first job was as a management trainee and associate buyer at the old Abraham & Strauss, one of the four department stores that helped solidify the Fulton Mall as Brooklyn's main shopping destination.

"Except in those days, it wasn't called the Fulton Mall, it was just Fulton Street," Mr. Weiss joked.

Mr. Weiss grew up in Crown Heights and attended Brooklyn Tech High School in nearby Fort Greene. He remembers the area well. "It was just the greatest place to be," he said. "So much activity. So much action. Brooklyn was it."

He spent almost the first decade of his career at A&S, working in different departments, moving up through the ranks. This was in the late 1960s and early '70s, before Brooklyn, along with the rest of the city, began its precipitous decline into bankruptcy and decay.

"It was very different than it is today," Mr. Weiss recalled. "It was very optimistic, to tell you the truth. Brooklyn was quite a place in those years. It was a place of expectation and aspiration. It was solidly middle class, everyone sort of felt like they had a shot if they worked hard. It was very different then."

Mr. Weiss left Abraham & Stauss for a job at Casual Corners, which along with the Limited was just starting to define the specialty (read:non-department) store model of shopping that dominates malls these days. "Little known fact, computers are what made that possible," Mr. Weiss said. "It revolutionized retail. You didn't have to count the stubs, the computer did it for you."

He then spent a few years as a consultant before joining Limited Brands in 1981 to help launch Express. Over the next three decades he worked throughout the companies, including serving as CEO for both Express and Limited Brands. In 2004, he retired before rejoining Express three years later after it was bought by a private equity outfit. "I wasn't very good at retirement, things," he said. "My one piece of advice to you is develop some retirement skills when you're young. Take up golf or bocce. If you don't retirement will be very boring."

Meanwhile, Brooklyn began its rejuvenation, something Mr. Weiss both marvels at and yet always expected. "I knew that street had to be rejuvenated at some point," Mr. Weiss said. "The big question was when could it company afford to get into the place and make it work. You don't want to be too early, and you don't want to be late. I really think now is the time."

Not that the Fulton Mall ever really lost its popularity, even if a little of that luster changed. The demographics were different, but it remained one of the busiest, and most profitable retail strips in the city. There are times when the long-timers might complain about the changes that have come to the strip. Mr. Weiss insists his store will be welcoming to all. "Demographically, we're everywhere in the country," Mr. Weiss said. "Manhattan, Miami, Chicago, Boston, LA, San Francisco. Brooklyn is no different."

The party tonight should offer a mix of new and old, with everything from shaved ice to Roberta's Pizza and, for those who can't manage the impossible reservation's, neighboring Brooklyn Fare. Inside, Express will be unveiling a new interiors concept, designed by Japanese architect Masamichi Katayama of the firm Wonderwall. "We want to elevate the retail experience for national stores, really take it somewhere new," Mr. Weiss said. The concept first installed in the King of Prussia store.

So Mr. Weiss may have the local flavor down, but can he make his clothes work? He admitted to loving the styles of Brooklyn, particularly Williamsburg. "The whole art, bohemian community, has added to the fashion profile, the creative fashion profile of the borough," Mr. Weiss said. "They're not high-fashion dressers, they're creative dressers."

Asked whether he can succeed in such a fashion-conscious environment, he expressed no doubts.

"Some of our most successful stores are in the New York area, on Long Island and in Jersey," Mr. Weiss said. "People want to look good, and that's what we're good at."

Walmart strikes out once again. (Related Companies)

The press release came in even before The Observer had seen the initial report that prompted it.

"We have not had any talks with Walmart about a location at Willets Point and we have absolutely no intention of discussing this site with them," the email statement read.

Who knew! And yet it made perfect sense, as the company has been looking for any opening imaginable in the city.

The Daily News had heard from two Queens pols that had been contacted by Walmart about potentially supporting one of the big box retailer's outlets at the recently announced Mets Mega Mall.

“They were looking at Willets Point as a possibility for a new site in New York,” said one elected official, who asked not to be named, but said he is opposed to the idea.

Another elected official, who also did not want to be named, said the company had been courting support.

Nothing new here. Walmart has been desperate to open up an outpost in the five boroughs since its efforts in 2006 were thwarted at the City Council, and starting two years ago, the big box boogeyman seriously began to ramp up those efforts, most notably trying to plant itself at the Related Company's Gateway Center development in East New York, where the company could build as-of-right.

But following gaffes here and elsewhere and the notorious bribery incident in Mexico, the efforts have grown more difficult.

Now, even Walmart's staunchest backers seem to want nothing to do with the company. For starters, Related, along with their Willets partners the Wilpons, have disavowed any involvement with the company in building a Queens outpost. The rest of their unexpected statement reads:

There have been and will be no negotiations, they are simply not a part of our plan to build an enclosed retail and entertainment destination at Willets Point, that will bring much needed jobs and economic activity to the area and lead to the development of a new neighborhood.

Those are pretty emphatic words, but they also make a good bit of sense. The rejiggered project has already drawn criticism from a number of corners, does it really need more?

What is also surprising is that the City's Economic Development Corporation, the lead agency behind the project, and the mayor's pro-business attack dog, has distanced itself from Walmart at Willets, as well. An EDC spokesman told Gothamist, "These reports are absolutely without merit. There have been no discussions between the developer and WalMart."

This is in stark contrast to the mayor's previous statements about the company, when hizzoner strongly endorsed Walmart coming here.

He still clearly holds these views even as his underlings at EDC deflect them, at least in one corner of the city. On his weekly radio show today, Mayor Bloomberg reiterated Walmart's rights to open in the five boroughs: "As long as they don’t break any laws, we should not, government, the City Council included, should not be out there criticizing because all that says is to other companies that might want to locate here, you know, ‘What do I need that aggravation for? Who knows if they turn on me?’"

The mayor went on to tick off the various causes Walmart supports, from responsible gun ownership to the United Negro College Fund. He also pointed out that numerous New Yorkers cross city lines to shop at Walmart stores in Nassau County and New Jersey—a point echoed by a Walmart spokesman in an email to The Observer: "New Yorkers went out of their way to spend more than $215 million at Walmart in 2011."

Still, if the rumors of Walmart's "stealth" entreaties to Queens pols for political backing is true, it demonstrates just how desperate the firm's situation has grown.

When the company turned up again two years ago, The Observer predicted it would attempt the same divide and conquer tactics it used to open a store in Chicago not long ago. But almost the entire political class, with the exception of the mayor, has vocally opposed Walmart. This includes every would-be mayoral candidate. It is now or never for the company, and even that may not be enough. That bouncing smiley face may never alight on our fair city.

Big government meets big business.

Muni money.

The Landmarks Preservation Commission has been on the defensive of late, fighting off claims from the real estate industry that it hinders development rather than helping it. But in givings its unanimous approval to the transformation of the Brooklyn Municipal Building—in the newly created, much maligned Downtown Brooklyn Skyscraper Historic District—the commission reasserted its role as a steward of both the city's history and economy.

“It proves again and I don’t know how many times we have to do it, that economic development and preservation go hand in hand and here’s a textbook example of it,” Commissioner Chairman Robert Tierney said in an email.

United American Land, a local developer active in the Fulton Market, plans to transform the first, second and below-grade floors of the building into roughly 48,000 square feet of retail space. Albert Laboz, United American Land's principal, confirmed plans for a restaurant within the building and noted that the company is close to signing a lease with Sephora.

While the commission has no control over tenants, Sherida Paulsen, the architect who presented the project at a hearing on behalf of Mr. Laboz, noted to commissioners that the retail space would not be used for banks, pharmacies or fast food.

The space is currently being occupied by the Department of Finance, which will relocate within the building to other city-owned space.

Elizabeth de Bourbon, a spokeswoman for the LPC, said there was no opposition expressed during the hearing and many commissioners expressed tremendous approval for the project. “Several of the commissioners noted it’s a great project,” she said.

Brooklyn Borough President Marty Markowitz, whose office in Borough Hall looks out on the Municipal Building, said he looks forward to its transformation into a vibrant retail corridor.

“Downtown Brooklyn is in the middle of an amazing renaissance and this will only enhance our stature as a 24/7, live, work, play and learning city center,” Mr. Markowitz told The Observer in an email. “With the help of developer United American Land, we will soon be able to celebrate 210 Joralemon becoming an economic powerhouse and world-class destination for dining and shopping.”

Mr. Laboz said his company is eager to bring great retail to Brooklyn and is happy to have successfully gained the commission’s approval. The remaining process for the approval of the retail development of the building consists solely of authorization from the Department of Buildings.

“We have had a lot of interest from various retailers and we can now move forward with plans with a stronger sense of certainty,” Mr. Laboz said.

More aisles than Walmart, Target, and Best Buy combined! (Courtesy of Electron Plumber)

Big isn't always better!

Best Buy did a monstrous belly flop in the pool of big retailers last Thursday, reporting a $2.6 billion quarter loss and sending tidal waves to similar retailers. Best Buy, along with many of its retailing rivals, is shifting their focus to opening smaller locations. We are facing down the end of the big box story, according to Bloomberg.

Target, Walmart, all are opening smaller stores, a recognition of changing demographics, a shift online and competition from one another as markets become saturated.

Lady Walmart, who is perhaps queen of the belly flop in local communities, has plans to build about 100 petite stores, Neighborhood Market, as well as 150 supercenters, about thirty more than they added in 2011, despite eight consecutive quarters of profit loss. The Neighborhood Markets have been seen as a strategy to break into dense markets like New York, going up against the Duane Reades of the world.

Still, the news of shrinking interest and sales can't help but cause wonderment at the fact that Walmart is somehow America's favorite retailer.

mewing@observer.com

Dig in!

The new Apple store in Grand Central Terminal is a lovely, understated project in one of the city's premier public spaces.

All the same, some sour apples have been complaining that the Cult of Steve has been paying below market rents for its space, leading to an investigation by the state. The M.T.A. counters that Apple is still paying more than the previous tenant, and its arrival means bigger revenues across Grand Central, given Apple's appeal. This latter bet appears to be paying off.

According to Crain's, that culinary slam dunk, The Michael Jordan Steakhouse, has seen a 7 percent jump in sales since Apple opened. And this is not simply because a competing restaurant was closed—while the new store was under construction, there was no commensurate rise in receipts. The M.T.A. says this proves the success of the Apple strategy, as do the dribbling meat eaters.

“We know their customers are coming here,” Matthew Glazier, an owner of the steakhouse, told Crain's. “I'm always looking for the little white bags."

Another perfect accompaniment? Maybe a Junior's cheesecake or some of Mendy's signature matzah ball soup. Just imagine the synergies when Shake Shack opens. Between there and Apple, a giant Möbius strip of lines will form, with no escape.

mchaban [at] observer.com | @MC_NYC

Here to stay. (Getty)

Downtown Brooklyn developers and cooperators, with a hefty helping hand from the real estate lobby, threw everything they could at the Borough Hall Skyscraper Historic District, a new landmarking effort aimed at saving the area's historic highrises. In the end, the preservationists won out, as a City Council subcommittee voted unanimously yesterday to approve the historic district, all but ensuring its passage by the full council on February 1.

There were some interesting compromises that may not have fully assuaged concerns in Downtown Brooklyn but will hopefully go a way toward addressing any problems in the future. The co-op board at 75 Livingston Street was one of the loudest critics of the proposal. Brooklyn Councilmen Steve Levin, who represents the area, and Brad Lander, chair of the landmarks subcommittee, released a joint statement yesterday celebrating the passage of the district but also calling on the Landmarks Preservation Commission to go easy on the co-op.

"We want to particularly recognize the co-operators of 75 Livingston Street and praise them for their stewardship of the building over the past decade, as they have spent millions restoring their building after years of decline," the councilmen said. "Given their hard work and investment, we ask the LPC to work with the board of the building, and to show maximum appropriate flexibility as they move forward in their efforts to maintain the building without imposing hardships on the co-operators."

Another new wrinkle, one that will have citywide implications, is an announcement by the commission to revise how it reviews storefronts, another major issue for landlords. Instead of lengthy public reviews, these will be handled at the staff level. "These new guidelines will allow many more new and relocating stores—in Downtown Brooklyn and around the city—to obtain a quick, staff-level approval for exterior work," the councilmen said.

"After close consideration," they concluded, "we believe that this new historic district will strengthen the character of Downtown Brooklyn, allowing for new development and growth, like the new retail space planned for the Municipal Building, while preserving the graceful, historic, early-generation skyscrapers that make it Brooklyn’s civic center."

mchaban [at] observer.com | @MC_NYC

Cornering Queens? (Apple)

Brooklyn Borough President Marty Markowitz has been stamping his feet for years over his desire to land the holy grail of retailers: an Apple Store. After all, the M.T.A. bent over backwards to bringing a glowing Temple of Jobs into Grand Central. But it looks like Marty can forget about it, as Apple may be opening its next outer borough outlet in Queens County, not Kings County.

A developer in Forest Hills has told The Daily News he is in talks with Apple about opening a store in Queens.

Heskel Group Chairman Yeheskel Elias said if a deal is reached, the sleek store could open in as little as a year. It would be only the second Apple location in the city outside Manhattan. A Staten Island store opened in 2005.

“I will do anything I can to bring Apple in,” Elias said. “Queens has to have an Apple store.”

Apple spokeswoman Michaela Wilkinson said the company has “made no announcements” on new stores outside Manhattan.

But Elias said a broker for Apple reached out to him several months ago to discuss potential store locations in Forest Hills.

This could all be a ploy to simply make Mr. Elias' current retail developments look more appealing, but this also would not be the first time an Apple rumor turned out to be true.

Still, Queens is looking more and more tech savvy of late. With the creation of the Roosevelt Island tech campus, city officials are talking about transforming Long Island City into the city's second Silicon Alley. Not exactly Forest Hills—the Grand Central store would be closer—but could this quiet corner of New York become the new geeky gold coast.

mchaban [at] observer.com | @MC_NYC

Shrink to fit. (wilm23/Flickr)

Maybe the Fulton Mall just needs some zoning changes to save its mom and pop shops. That's what they're doing on the Upper West Side, tired of all the giant Duane Reades and Chases. New zoning requirements would limit the size of stores on Columbus and Amsterdam avenues, protecting the character of the neighborhood and possibly discouraging national retailers, who tend to prefer bigger spaces.

Not surprisingly, landlords are not happy about the proposal, according to The Journal.

It's opposed by leaders in the real-estate industry who say the zoning rules are a blunt instrument. The Real Estate Board of New York, an industry association and lobbying group, said a similar regulation along East 86th Street during the late 1970s didn't deliver what supporters hoped.

Property owners had to grapple with cumbersome rules, and in the end, chain stores opened along the thoroughfare anyway, said Michael Slattery, a senior vice president at REBNY. McDonald's and other fast-food chains don't need as much space as major retailers or banks were able to move in. The regulation was eventually repealed.

"This was tried before and failed," Mr. Slattery said. "It's ignoring the changing nature of retail."

Funny that developers hate the cudgel that is New York City zoning, except when it benefits them. This is only the latest showdown for REBNY on the Upper West Side, as the real estate group is vehemently opposing plans for a West End Avenue historic district, fearing it will diminish development. Heaven forefend.

mchaban [at] observer.com | @MC_NYC