PARAMUS, NJ-Vornado Realty Trust hasn't officially announced its plans, and hasn't even submitted an application to the local planning board, but the REIT, in its annual report, gave an indication of what it expects to do with Bergen Mall here. Vornado bought the one-million-sf complex, which was built as an open mall in the late '50s and enclosed in the early '70s, from Simon Property Group for $145 million in late 2003.
As outlined in the annual report, Vornado expects to spend $102 million to redevelop the aging property in phases between now and the end of 2008. The mall, which will be renamed Bergen Town Center, is expected to remain open during that time. Vornado officials did not return calls for comment.
And Vornado will apparently have to replace two of the property's department store anchors. As reported by GlobeSt.com, Macy's will close this month, with Macy's East opting to focus on its two other stores in the market at Paramus Park Mall and Garden State Plaza. The Bergen Mall Macy's was originally a Stern's, but was converted in 2001 when parent Federated Department Stores shuttered the Stern's chain.
Value City is also apparently on the way out, at Vornado's behest. Company officials have yet to make a formal announcement, but in the annual report it was stated that Vornado has agreed to pay $12 million to buy out the discounters lease if it comes to that.
As far as potential replacements for the two anchors, the names of both Target and Wal-Mart have surfaced, although it's highly unlikely that both would come on board. And a recent recommendation by the local planning board to ban new big-box stores here may have an impact on how the mall is ultimately redeveloped, according to observers.
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