the staff of the Ridgewood blog
East Rutherford NJ, the American Dream megamall or Xanadu as it used to be called in the New Jersey Meadowlands is back in the news and once again and running out of money. The Ridgewood blog has detailed the massive retail fiasco over the years and it’s frequent misadventures and miscues.
First conceived in 2003 and at the time we called it ,” most likely the single dumbest idea ever conceived by the state of New Jersey ” , who knew. Just what Bergen County needs is another Mall. Originally the Sports Authority folly was known as Xanadu. Billed by Ex. Governor Christie as the “ugliest building in the world” it’s gone from one disaster to the next and one owner to the next over the past decade.
The 3 million-square-foot retail and entertainment mall nearly emptied it’s reserve account to make a $9.3 million payment that was due on Tuesday, on roughly $290 million of debt supported by sales tax receipts, according its latest securities filing.
About $820 is left in the reserve fund, the filing said. And it’s unclear whether or not the developers will be able to make their next payment, which is due on Aug. 1. The filing included a letter from bond servicer Trimont Real Estate Advisors, which said American Dream wasn’t offering updates on project expenses and performance, as it is obliged to do under bond documents. “While everyone appreciates the difficulties posed by the pandemic, and the likelihood that grant revenue received now may not be sufficient to fully pay the bonds, that does not relieve the developer from responsibility to comply with its obligations under the various agreements,” Trimont said in the letter, dated Jan. 18.
The Covid-19 health crisis is the current antagonist, but the mall was already facing serious changes before the pandemic . The American Dream’s sales were only $220 million for the first three quarters of 2021, according to separate public disclosures nowhere near the $2 billion that developers projected American Dream would bring in during its first year of operations.
As of Jan. 1, American Dream was about 77% leased, with leases for another 5% of space in negotiations.
Triple Five Group, American Dream’s developers, previously defaulted on its $1.4 billion Mall of America mortgage, missing months of payments. It was struggling to pay its bills when tenants weren’t paying rent on time. However, it eventually reached a deal with lenders to avoid foreclosure of the property, and the loan was made current as of December 2020.
Triple Five lost 49% of its stake in the Mall of America and the West Edmonton Mall in Canada to American Dream’s construction lenders last year , but in December, Toys R Us opened a flagship store at the property, which was seen as a minor vote of confidence in the mall
The government can eff up anything when you give the politicians the ability to spend other peoples money.
Our state government in Trenton is run by democrats, primarily from the shit-hole cities with the big population centers. These people couldn’t manage their own credit cards.
The government should be limited to police, fire, sanitation, and roads. PERIOD
Well that’s the problem, Look Where the money came from. Came from the pension fund.
Comical! the title could’ve been village of Ridgewood running out of money!
“The government should be limited to police, fire, sanitation, and roads. PERIOD”
Cool. I’m sure you’ll be returning your social security checks, right?
Are you really that dumb ? ,ask former gubner Corzine about the social secuity trust fund ,but if you can make it happen ill take all my money back in a lump sum ,thanks
Don’t let McGreevey, Boss Weinberg and Dom Sarno off the hook when it comes to this mess.
Social Security 🤣 the worst investment you are forced to make so the politicians have a nice slush fund to raid.
Maybe if it wasn’t so expensive more people would go. How is family of four or any size family afford to go .