Woodbury Lakes mall sold back to developer

by Jennifer Bjorhus
StarTribune.com

Woodbury Lakes, the high-end mall that went back to the lender last year, has been sold -- back to one of its original developers.

A joint venture called DBRA RED Woodbury closed on the deal Tuesday, one of the partners confirmed. While terms were not disclosed, the price was said to be just north of $30 million.

DBRA RED Woodbury is a joint venture of Fortress Investment Group, a large publicly traded alternative asset manager in New York, and RED Equity Partners, part of retail developer RED Development in Kansas City, Mo., and Phoenix.

The 305,303-square-foot mall, about 75 percent leased, sits along Interstate 94 at Radio Drive in Woodbury. It's one of the stylish, outdoor "lifestyle centers" that proliferated during the housing boom and is home to trendy shops such as Aeropostale, Banana Republic and Trader Joe's.

The struggling mall has been a point of interest among brokers who have viewed it as something of a case study for a mall that "didn't work," said Ned Rukavina, senior vice president at NorthMarq.

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