American Dream mega mall and entertainment complex in East Rutherford, New Jersey After more than 17 years, it finally opened on October 25, 2019. Then came the coronoavirus pandemic.
Timothy A. Clary | AFP | Getty Images
According to a report in the Financial Times, lenders supporting New Jersey’s mega-mall American Dream are on the verge of acquiring 49% of the shares in two additional shopping centers owned by developers Triple Five Group.
Triple Five used the other retail properties as collateral for its $ 1.2 billion construction loan with American Dream, which is still not fully open after years of construction in and out and multiple owners.
The defaulted loan is held by JP Morgan, Goldman Sachs, Starwood Capital, the CIM Group, Soros Fund Management, Wafra and iStar. This emerges from the FT’s report, which named people familiar with the matter. The restructuring is expected to be completed soon, but the process may be delayed.
A representative from Triple Five declined to comment.
Triple Five had previously defaulted on its $ 1.4 billion Mall of America mortgage during the Covid pandemic due to a lack of months of payments. It struggled to pay its bills when tenants, including retailers and restaurants, didn’t pay their rent on time. However, an agreement was recently reached with the lenders to avoid foreclosure on the property and the loan was updated from December onwards.
The health crisis brought a whole host of new obstacles to the decades-old American Dream Megamall. On March 16, 2020 – just three days before dozens of retail stores opened in the mall – the 3 million square meter complex was closed due to pandemic restrictions. Some of the entertainment options, including a huge indoor water park, have since reopened, but with limited capacity.
Additional openings in the American Dream are planned for later this year, including the Sea Life Aquarium and Legoland Discovery Center.
Read the full Financial Times report.
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