Unfinished $2 billion mall at the Meadowlands in NJ taken over by lenders

Aug. 9 (Bloomberg) -- Meadowlands Xanadu, the unfinished $2 billion New Jersey shopping mall designed with an indoor ski slope and a Ferris wheel, was taken over by lenders from a group led by Colony Capital LLC after construction stalled.

The lenders are negotiating with new developers to complete the project, the group said in a statement today. The creditors, including Credit Suisse Group AG, Capmark Financial Group Inc. and an affiliate of Fortress Investment Group LLC, had given the Colony-led group until yesterday to raise additional equity, four people with knowledge with the matter said last week.

Xanadu, located about 10 miles (16 kilometers) west of Manhattan in East Rutherford, has been plagued by delays since construction began five years ago. Colony and investors including Dune Capital Management LP took over the project from Mills Corp. in 2006, agreeing to invest $500 million and arrange $1 billion in financing. Development ran into trouble after lender Lehman Brothers Holdings Inc. went bankrupt in 2008.

“This has always been a kind of high-risk, high-payoff project, from a time when the Meadowlands looked like it was on the verge of fulfilling its economic promise,” Donald Scarry, principal economist of Mount Laurel-based New Jersey Economics, said in an interview yesterday. “It doesn’t look that way anymore. It’s not surprising that any set of developers, or series of developers, would have difficulty.” .............(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=arzXk8x81w1w&pos=5

In a related story, I was in Asbury Park last month and was delighted to see the walls describing the high-rise seaside condos had been ripped away!

:headbang:
rocktivity

:P

:rofl:

Really, you should post spoiler alerts. I never got to see the series on air since I don't get TV and I'm only up to season 4 jamming it via Netflix.

:rofl:

I have yet to see anything besides the first two episodes, myself.

"Rosebud.........."

n/t

If they were homeowners, they could look forward to a whole bunch of people telling them how irresponsible they are, and how they need to live up to their financial responsibilities, even if the amount of their obligation exceeds the value of the property. But because they're an LLC, they'll be praised for making a savvy business decision and protecting their shareholders' assets.

not!

Shopping, as a sport, is no longer "cute" or fun.

We need another mall in NJ? BTW - I've been going down to the Asbury Park beach every Sunday this summer. . . they did a fantastic job bringing it back to life and it's only $5 to get in!:-)

into this money pit.

Typical right wing tool.