American Dream Mall Misses $8.8 Million Bond Payment – ​​Commercial Observer

of american dream Megamall’s continuing nightmare entered a new chapter Monday after it missed an interest payment on a bond issued to complete a long-stall New Jersey project.

More than 3 million square feet of retail and entertainment facilities in East Rutherford, New Jersey, have not made the required $8.8 million in interest payments, according to the bond. document Posted on Monday.Regulatory submissions first reported by bloombergnote that the unpaid does not constitute a default on the $287 million grant revenue bond issued by the Wisconsin-based Office of Public Finance. New Jersey Sports & Expositions Authority.

destination mall owner, triple five grouppreviously used its debt service reserves to pay bondholders due 01-Aug-2021 and 01-Feb-2022, but ran out of accounts and now has only $862.12.

Triple Five so far Failure In obtaining the necessary state documents approved for release New Jersey Economic Development Authority Subsidies for bond payments based on collection of sales tax from malls.

A spokesperson for American Dream said in a statement: Bondholders will be paid exclusively from the sales tax generated from the project, with up to 75% of the funds raised allocated by the state.

“There is no financial obligation to make payments to bondholders,” the spokesperson said. “We have made all the necessary submissions to NJEDA. We believe that sales tax revenue is generated from the project and paid to the state, and that the state allocates funds to the budget to make payments to creditors. increase.”

American Dream’s $1.1 billion unrated bond transaction in June 2017 also included an $800 million limited obligation revenue bond guaranteed by paying in lieu of taxes to the Borough of East Rutherford. rice field. Mall also owes his $1.7 billion construction debt that Triple Five has asked to extend. Mall of America as collateral for

of Originally called Xanadu Construction first broke in 2004 Mills Corporation When Makkari Real Estate It was at the helm before facing a string of delays related to the 2008 financial crisis. Triple Five took over in 2011, and after construction was finally completed 15 years later with the help of the municipal bond market, the mall faced a new challenge after being partially reopened in late September 2019. Faced, but less than six months later, the beginning of the COVID-19 pandemic.

american dream lost Losses of $273 million were incurred last year, offsetting gains of $173 million. Major attractions at the mall include: DreamWorks Water Park, nickelodeon universe and an indoor ski area.

To contact Andrew Cohen: [email protected].

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