The Site of New Jersey’s Very Last Kmart Just Sold in Westwood for $28.8M—Here is What’s Next

End of an Era: Site of New Jersey’s Last Kmart Sold for $28.8 Million

the staff of the Ridgewood blog

WESTWOOD, NJ — A major real estate shift is coming to Bergen County. The Westwood Plaza shopping center, famously known for housing the very last Kmart in the state of New Jersey, has officially been sold in a multimillion-dollar transaction.

According to filings with the U.S. Securities and Exchange Commission (SEC), Hackensack-based seller First Real Estate Investment Trust of New Jersey, Inc. entered into a formal purchase and sale agreement on May 26. The buyer is an affiliate of Jacksonville, Florida-based Regency Centers, who secured the prime 700 Broadway property for a staggering $28.8 million.

While the transaction marks a massive investment in the local economy, immediate plans for the future of the retail property remain tightly under wraps.

Zoning Upgrades: Could an Ice Rink or Bowling Alley Be Coming?

The massive retail space has been without its historic anchor since the final New Jersey Kmart closed its doors in 2023. Hoping to proactively revitalize the heavily trafficked commercial area, the borough updated the property’s local zoning laws in 2024.

The current zoning rules now allow for indoor recreational businesses, paving the way for exciting potential additions such as:

• Boutique bowling alleys

• Indoor ice skating rinks

• Modern entertainment complexes

Despite the massive vacancy left by Kmart, Westwood Plaza remains a bustling local hub. Popular businesses like TJ Maxx, The UPS Store, GNC, and European Wax Center are fully operational and continue to draw consistent daily foot traffic.

Local Officials Seek Answers from Regency Centers

The $28.8 million deal apparently caught local leadership by surprise. Mayor Raymond Arroyo revealed that the borough was not approached by either the buyer or the seller prior to the public announcement.

Mayor Arroyo clarified that the property is currently still zoned strictly as a shopping center, which remains its only legally permitted use. No developers have formally approached the town requesting a variance or rezoning, though an outside engineering firm did submit an information inquiry regarding the site last year.

“I’ve asked the borough attorney to contact Regency directly and inquire as to their intentions,” Mayor Arroyo stated. “A revitalized shopping center with updated flood control measures would be most welcome.”

The Critical Need for Flood Control Measures

Any future redevelopment at the 700 Broadway site will have to reckon with a historic challenge: local flooding. Flash flooding in Westwood and neighboring Bergen County towns has been a costly, persistent obstacle, particularly near the Broadway transit corridor.

To combat this, the borough has partnered with the Stevens Institute of Technology in Hoboken on two sophisticated, data-driven studies:

1. An exhaustive look at successful flood-control systems utilized by reservoir infrastructures nationwide.

2. A drone-mapping initiative to isolate and clear clogged local waterways that worsen seasonal flooding.

Redeveloping the plaza offers a rare opportunity to implement modern engineering fixes. Last year, the town actively gathered flooding stories from residents to support an upcoming application for federal disaster mitigation aid through the Federal Emergency Management Agency (FEMA).

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