A $235 million CMBS loan backed by Bridgewater Commons, a 1.15 million-square-foot mall in Bridgewater, New Jersey, has moved to special servicing after failing to meet its debt yield. Morningstar Credit reports the loan is expected to default before its October 2026 maturity date, even after receiving a $3.4 million principal curtailment last month.
The 10-year loan, securitized in the GSMS 2012-BWTR deal, originally matured in November 2022. It received three one-year extensions in November 2024 after the asset was sold by J.P. Morgan Asset Management to Pacific Retail Capital Partners, which had faced potential foreclosure proceedings.
Pacific Retail Capital Partners purchased the property in May 2023 and began a modernization effort, converting 90,000 square feet vacated by Lord & Taylor into new space. The three-level mall, located off Interstate 297 at 400 Commons Way, opened in 1988 and is now 88 percent occupied. Tenants include Bloomingdale's, Macy's, and a Fogo de Chao steakhouse.
In April 2026, Pacific Retail Capital Partners sold The Village at Bridgewater Commons, a 92,461-square-foot open-air retail center on the property, for $54.3 million to meet debt yield requirements and pay down the larger loan balance.