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Northway Shopping Center

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A big-box retail center on Central Avenue in Colonie, New York, formerly an enclosed shopping mall.

Last updated August 25, 2026

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Overview

Northway Shopping Center is a retail complex in Colonie, New York, along Central Avenue, also designated New York State Route 5. It stands across the road from Colonie Center, an enclosed shopping mall, and is associated with the commercial development of the Wolf Road and Central Avenue area. The property operated as an enclosed mall called Northway Mall from its opening in 1970 until the late 1990s, before being substantially redeveloped as a collection of freestanding big-box stores and smaller retail buildings. The site originated with the purchase of approximately 59 acres of land in the fall of 1968. The property had previously been part of Albany's waterworks holdings and had been protected as part of the Albany Pine Bush since the nineteenth century. New York developer Morris Steinberg acquired the land from the City of Albany for $1.2 million. Planning and zoning activity followed in 1969 and 1970, including hearings concerning subdivision work and the size of the proposed mall signage. Preliminary site work began before all approvals had been completed. The original center opened in October 1970 with two large department-store anchors. Allied Stores' Almart opened on October 8, followed by E. J. Korvette on October 15. The one-level enclosed mall was planned to contain roughly thirty smaller stores between the two anchors. Woolworth's was among the announced tenants, while a bank branch and the Time-Out Tunnel family amusement arcade also occupied space. The arcade remained a tenant from the center's opening through the closure of the enclosed mall in 1998. St. Francis Chapel, a Catholic chapel sponsored by the Holy Name Province of the Order of Friars Minor, also operated inside the mall from late 1970 and provided religious services and pastoral guidance to shoppers and employees. The center experienced the same structural pressures that affected many older American malls. Its original anchor stores closed within roughly a decade of opening. The former Korvette space was converted into smaller discount-oriented units in 1983, but the format did not restore the mall's earlier strength. During the 1980s the property was at times promoted as an off-price center, later using value-oriented language instead. A $2 million visual renovation in 1995 added foliage and updated design elements, yet it did not produce a durable increase in occupancy or traffic. The decline accelerated in the late 1990s. Lechmere, Woolworth's, and Montgomery Ward all closed their locations in or around 1997; Montgomery Ward announced its closure in October 1997 and completed it in January 1998. By late 1997, only about half of the available store spaces were occupied, and by December 1998 fewer than twelve stores remained. The enclosed mall closed at the end of 1998, although Marshalls continued operating into 1999 because of its lease. Most of the mall was demolished beginning in May 1999. Redevelopment transformed the property into the present Northway Shopping Center, a big-box retail configuration. The portion containing David's Bridal remained as a detached building, while new freestanding structures were constructed behind it. Target became a principal anchor, and tenants associated with the redeveloped center included David's Bridal, Jo-Ann, Marshalls, Eddie Bauer Outlet, Dress Barn, and Linens 'n Things. The Hoyt's Cine 10 theater, which had operated for more than two decades in a separate ten-screen building, closed after its lease expired in August 2000. The center's documented identity is therefore best understood as a surviving retail property whose physical and commercial format changed from an enclosed mall to an open-air big-box center.

History

Northway Shopping Center began as a redevelopment of land connected to Albany's historic waterworks property and the Albany Pine Bush. In the fall of 1968, New York developer Morris Steinberg purchased approximately 59 acres from the City of Albany for $1.2 million. The proposed project required local planning and zoning review. Hearings and meetings in 1969 and 1970 addressed the subdivision, preliminary construction, and oversized signage. Although formal approvals were still being discussed, grading work had already started before some of the relevant proceedings. The original Northway Mall opened in October 1970 as a single-level enclosed shopping mall on Central Avenue in Colonie. Almart, an Allied Stores division, opened its approximately 150,000-square-foot store on October 8. E. J. Korvette opened its roughly 140,000-square-foot location on October 15. About thirty smaller stores were planned between the anchors. Woolworth's was announced as another major tenant, and a branch of National Commercial Bank and Trust Company of Albany was approved for the center. These tenants reflected the department-store and general-merchandise model common to suburban American malls of the period. Several unusual or community-oriented uses made Northway distinctive. Tico Bonomo, formerly associated with Bonomo's Turkish Taffy, opened the first Time-Out Family Amusement Center there in 1970. The Time-Out Tunnel became part of a wider northeastern arcade chain and remained at Northway until the enclosed mall closed in 1998. St. Francis Chapel, sponsored by the Holy Name Province of the Order of Friars Minor, opened informally in December 1970 after construction delays. The 3,267-square-foot chapel offered Masses, prayer, and pastoral consultation to shoppers and retail employees. It was formally dedicated in March 1971 and attracted visitors from multiple faith backgrounds as well as Catholics. The original anchor strategy weakened during the following decade. Almart and Korvette both closed approximately ten years after the center opened. In 1983, the former Korvette premises were divided into smaller discount-oriented spaces, but the experiment did not produce a successful long-term replacement for the department store. The property was also marketed at different times with off-price and value-oriented terminology, reflecting an attempt to compete through lower prices rather than through a conventional fashion-mall identity. By the 1990s, competition from newer and larger shopping centers, changing consumer patterns, and tenant departures had reduced the enclosed mall's viability. The owners invested approximately $2 million in 1995 to refresh the interior with foliage and updated design elements, but the renovation failed to attract enough new tenants. Restaurant offerings contracted, and by October 1997 Ario's Pizza was reportedly the only remaining restaurant after Rick's Cafe closed. The decline became irreversible in 1997 and 1998. Lechmere and Woolworth's closed in 1997, while Montgomery Ward announced the closure of its Northway store in October of that year and completed it in January 1998. By late 1997, around half of the available spaces were vacant. Fewer than twelve stores remained open in December 1998, and the enclosed mall shut at the end of that month. Marshalls continued into 1999 under the terms of its lease. Redevelopment planning had begun before the closure. A variance approved by the Town of Colonie Planning Board in December 1998 allowed a different physical arrangement. Most of the enclosed mall was demolished beginning in May 1999. The section occupied by David's Bridal was retained as a detached building, while new freestanding buildings were built behind it. Target became a principal anchor, and the resulting open-air complex included retailers such as Jo-Ann, Marshalls, Eddie Bauer Outlet, Dress Barn, Linens 'n Things, and David's Bridal. The conversion marked the property's shift from a traditional enclosed mall to a big-box shopping center. The site's entertainment component also ended during the transition. Hoyt's Cine 10 had operated for more than twenty years in a separate 23,000-square-foot building with ten screens and approximately 2,000 seats. Beginning in 1993 it had shown second-run films at reduced prices, but it did not renew its lease when it expired in August 2000. Northway Shopping Center consequently represents both the persistence of a retail location and the replacement of its original mall format with a more flexible collection of large-format stores.

  • 2000

    Cine 10 closes

    [1]

    The Hoyt's Cine 10 theater ended operations after its lease expired in August.

  • 1999

    Redevelopment into a big-box center begins

    [1]

    Most of the enclosed structure was demolished and replaced with freestanding retail buildings.

  • 1998

    Enclosed mall closes

    [1]

    The original enclosed mall ended operations at the close of 1998 after severe tenant losses.

  • 1995

    Interior modernization effort

    [1]

    A reported $2 million refurbishment introduced new foliage and design features but did not reverse the center's decline.

  • 1983

    Former Korvette space is subdivided

    [1]

    The former anchor premises were converted into smaller discount-store units.

  • 1971

    St. Francis Chapel is formally dedicated

    [1]

    The Catholic chapel inside the mall received its formal dedication after opening informally in December 1970.

  • 1970

    Northway Mall opens

    [1]

    The enclosed mall opened in October with Almart and E. J. Korvette as its initial principal anchors.

  • 1970

    Time-Out Tunnel begins operations

    [1]

    The first Time-Out Family Amusement Center opened at Northway, becoming a long-running mall tenant.

  • 1968

    Land acquired for the proposed mall

    [1]

    Morris Steinberg purchased approximately 59 acres from the City of Albany for $1.2 million, initiating development of the future Northway site.

Products and positioning

A convenience-oriented suburban retail center that evolved from an enclosed, value-focused mall into an open-air big-box shopping complex.

  • Retail · 1999

    Big-box general merchandise

    The redeveloped center's principal format is large-scale general-merchandise retail in freestanding buildings. Target became the principal documented anchor after the conversion from an enclosed mall, replacing the earlier department-store-centered arrangement with a more flexible big-box configuration.

  • Retail · 1999

    Specialty retail

    Northway has hosted specialty retailers serving apparel, crafts, fabrics, bridal customers, home-related shoppers, and off-price consumers. Documented tenants in the redeveloped center included David's Bridal, Jo-Ann, Marshalls, Eddie Bauer Outlet, Dress Barn, and Linens 'n Things.

  • Shopping mall · 1970

    Enclosed mall retail

    From 1970 through 1998, Northway operated as a one-level enclosed mall with department-store anchors and approximately thirty planned smaller stores. Almart, E. J. Korvette, and Woolworth's were among the principal early retail names associated with the property.

  • Family entertainment · 1970

    Time-Out Tunnel

    The Time-Out Tunnel was a family amusement arcade founded at Northway in 1970 by Tico Bonomo. The location remained open from the mall's beginning through the end of the enclosed-mall era in December 1998.

Brand decisions

  • 1998

    Replace the enclosed mall with a big-box retail centerStrategy

    Background

    By late 1998, the enclosed mall had fewer than twelve remaining stores and could not compete effectively with newer, larger retail destinations.

    Action taken

    After obtaining a planning variance, the developers closed and largely demolished the enclosed mall while retaining the David's Bridal building and adding freestanding stores.

    Aftermath

    The property emerged as Northway Shopping Center, an open-air big-box complex anchored by Target and occupied by multiple specialty retailers.

  • 1995

    Invest in a cosmetic mall renovationStrategy

    Background

    The aging enclosed mall was losing tenants and needed a stronger visual proposition against newer shopping centers.

    Action taken

    The owners reportedly spent $2 million on foliage and updated interior design treatments.

    Aftermath

    The investment did not attract enough new tenants to halt the center's decline.

    Reported renovation expenditure. $2 million (1995)

  • 1983

    Convert the former Korvette anchor into discount unitsStrategy

    Background

    The closure of an original anchor left a large vacant department-store space and weakened the enclosed mall's traditional tenant mix.

    Action taken

    The former E. J. Korvette premises were divided into smaller spaces for discount-oriented retailers.

    Aftermath

    The conversion did not become a successful long-term replacement for the anchor and the property continued to face occupancy and competitive pressures.

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