Had American Dream “burned down,” it would have been better: exec

Star-crossed New Jersey project costs owners 49% stake in other mega malls

Tri-State /
Mar.March 11, 2021 09:10 AM
The American Dream mall (middle) with the Mall of America in Minnesota (left) and the West Edmonton Mall in Canada (right) (Getty, iStock)

The American Dream mall (middle) with the Mall of America in Minnesota (left) and the West Edmonton Mall in Canada (right) (Getty, iStock)

The nightmare continues for owners of New Jersey’s American Dream retail complex.

Facing a cash-flow crisis, the Ghermezian family is set to lose almost half of its stakes in two other mega malls: the West Edmonton Mall in Canada and Mall of America in Minnesota, according to Axios.

The family’s Triple Five Worldwide had used those malls as collateral to finance the $5 billion New Jersey project.
“It would have been much better if American Dream would have burned down or a hurricane had hit it, financially, because we would have been covered by insurance,” said Kurt Hagen, an executive at Triple Five, speaking in Bloomington, Minnesota. The comments were first reported by Axios.

Located in East Rutherford, New Jersey, American Dream broke ground in 2004 and soon ran into financial trouble. The Ghermezians assumed ownership about a decade ago. The project was finally starting to come together when the pandemic hit.

Like other malls, American Dream closed for several months last year. It reported just $54 million in sales for the year, including $34 million in the fourth quarter after it reopened with capacity restrictions.

Hagen called the pandemic the “worst-case scenario imaginable.” But he said it’s unlikely the lenders want to seize full ownership, as they “have no interest in running a shopping mall.”

[Axios] — E.B. Solomont





    Related Articles

    arrow_forward_ios
    Chick-fil-A CEO Andrew Cathy and a rendering of Chik-fil-A 2205 Central Park Avenue in Yonkers  (Chik-fil-A/City of Yonkers)
    Chick-fil-A hatches first Westchester location
    Chick-fil-A hatches first Westchester location
    Harry Macklowe with 1 Wall Street
    Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
    Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
    (Photo Illustration by Steven Dilakian for The Real Deal with Getty)
    Manhattan retail market rises again, but momentum wanes
    Manhattan retail market rises again, but momentum wanes
    Retail, Shopping Centers, Cushman & Wakefield
    U.S. shopping center vacancy hits 15-year low
    U.S. shopping center vacancy hits 15-year low
    (Getty Images)
    Bed Bath & Beyond weighs bankruptcy
    Bed Bath & Beyond weighs bankruptcy
    223 East 86th Street and H Mart CEO Il Yeon Kwon (Getty, H Mart, Google Maps)
    Grocery chain H Mart to open Upper East Side location
    Grocery chain H Mart to open Upper East Side location
    Thor Equities’ Joe Sitt with139 Fifth Avenue
    Under Armour to open Flatiron outpost at Thor’s 139 Fifth Ave
    Under Armour to open Flatiron outpost at Thor’s 139 Fifth Ave
    From left: Schuckman Realty’s Kenneth Schuckman and Augenbaum Realty’s Josh Augenbaum with  1730 Bedford Avenue (Loopnet, Schuckman Realty, Augenbaum Realty, Getty)
    Brooklyn’s top 10 retail deals of 2022
    Brooklyn’s top 10 retail deals of 2022
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...