By John Gittelsohn | Updated on Jun 12, 2026 at 05:54 PM
New Jersey’s Paramus Park mall, part of a shopping center portfolio that Brookfield Corp. bought for $15 billion in 2018, is being returned to mortgage investors after the property value was slashed more than 70%.
The servicer of the $120 million mortgage is “pursuing noteholder’s rights and remedies,” according to a filing this week on the loan. A receiver was appointed in May for the property, the filing said. Paramus Park was recently appraised at about $61 million.
US malls are undergoing a culling process as leasing and traffic suffer at secondary locations even as sales soar at top-performing properties. About 16% of the space is vacant at Paramus Park, which is less than 20 miles (32 kilometers) northwest of Manhattan. The mall opened in 1974 and includes stores such as Macy’s, Old Navy, Swarovski and Uniqlo.
Representatives of Brookfield didn’t immediately respond to request for comment.
Read more: NJ Mall Struggles While Its Luxury Rival Thrives 4 Miles Away
Paramus Park was appraised at $210 million in 2015 when the current mortgage was originated. The estimated value was cut to $61.4 million in a November appraisal.
Annual sales at the mall averaged $470 per square foot compared with $747 for the New York metro area, according to a review last year by Green Street.
The delinquency rate on retail commercial mortgage backed securities was 5% in May, down from more than 15% in 2020 in the depths of the pandemic, according to data compiled by Bloomberg. The delinquency rate of office CMBS is more than 10%.