Woodbridge Center Mall Sold To Mystery Buyer At 'Liquidation' Price

WOODBRIDGE, NJ — In February, we reported that Woodbridge Center Mall was listed for sale.

And now, it was reported March 29 that Brookfield Properties has indeed sold Woodbridge Center. However, the new owner remains a mystery.

Mayor John McCormac confirmed Thursday the mall has a new owner, but all he would say is it "is up to them (the new buyer) to make an announcement" as to who they are.

Woodbridge Center Mall was sold in February for a liquidation sale price of $70 million. That resulted in a $155-million loss (62 percent loss severity) on the whole loan balance of $250 million, reported KBRA, a bond-ratings agency.

Read KBRA's entire report on Woodbridge Center Mall here; it's really worth a read for a market assessment of the mall property.

The new mystery owner "has every intention of keeping Woodbridge Center as a shopping, dining and entertainment destination," McCormac previously vowed in February in his annual State of the Township address. "We made it crystal clear to the Center’s realtors that we would not accept any housing or warehouse components — no matter who purchased the property."

The sale was first reported by CoStar, a commercial real estate news site. Commercial property behemoth Brookfield Properties has owned Woodbridge Center Mall since 2014. But Brookfield listed the mall property — which CoStar called "troubled" — for sale in 2023.

Also — in news that will not surprise any Woodbridge Township resident — the market value of Woodbridge Center has plummeted:

When Brookfield first took ownership in 2014, Woodbridge Center was appraised at $366 million. By October 2023, it was appraised at $79 million, a 78 percent drop in market value. CoStar also reported that Brookfield stopped making payments on their mortgage loan last year.

Their failure to make debt payment caused bondholders in two commercial mortgage-backed securities for Woodbridge Center to lose $155 million, according to KBRA.

"Woodbridge Center, like major malls across America, has struggled because of the Internet and the ease of buying directly online. It has done an admirable job of diversifying outside of basic retail by attracting new tenants. But it has just not been enough," McCormac said in February."The mall was recently listed for sale and there were many interested parties. A winning bidder has been selected and contract negotiations are underway."

A separate new buyer is also interested in the empty Lord & Taylor building, which has sat empty for years now.

Bondholders Lose $155 Million in Sale of New Jersey’s Woodbridge Center Mall (March 29 CoStar report)

Woodbridge Center Mall Listed For Sale, Contract Negotiations Underway (Feb. 2024 Patch article)