[ad_1]
American Dream Megamall and Entertainment Complex in East Rutherford, NJ After more than 17 years in development, it finally opened on October 25, 2019. Then came the coronoavirus pandemic.
Timothy A. Clary | AFP | Getty Images
Lenders backing the American Dream megamall in New Jersey are set to take a 49% stake in two other developer-owned malls, Triple Five Group, according to a Financial Times report.
Triple Five used the other commercial properties as collateral for its $ 1.2 billion construction loan to American Dream, which is still not fully open after years of intermittent construction and multiple owners.
The overdue loan is held by JP Morgan, Goldman Sachs, Starwood Capital, CIM Group, Soros Fund Management, Wafra and iStar, according to the FT report, which quotes people familiar with the matter. The restructuring is expected to be completed soon, he said, although the process could be further delayed.
A representative for Triple Five did not immediately respond to CNBC’s request for comment.
Triple Five previously during the Covid pandemic defaulted on its $ 1.4 billion Mall of America mortgage, missing months of payments. He struggled to pay his bills when tenants, including retailers and restaurants, failed to pay their rent on time. However, he recently made a deal with lenders to avoid foreclosure on the property and the loan was discounted in December.
The health crisis has brought a whole new set of obstacles to the megamall American Dream, which has been brewing for decades. On March 16, 2020 – just three days before the official opening of dozens of retail stores in the complex – the 3 million square foot complex closed due to restrictions related to the pandemic. Some of the entertainment venues, including a huge indoor water park, have since reopened, but to a limited capacity.
More openings are still planned at American Dream later this year, including its Sea Life Aquarium and Legoland Discovery Center.
Read the full Financial Times report.
[ad_2]
Source link