American Dream Owners Triple Five Trying to Claw Back $183M

Triple Five Group is often on the defensive end of disputes at New Jersey’s American Dream megamall. For once, the landlord is now on the offensive.

Don Ghermezian’s firm is pushing for a refund after it claims it overpaid $183 million in taxes to East Rutherford, NorthJersey.com reported. Triple Five is in the process of appealing its property tax value, while the mall’s borough is suing the developer over missed payments.

At the heart of the dispute is the East Rutherford land upon which the mall sits. The land has been assessed at more than $3 billion. But the mayor claims Triple Five is arguing it’s only worth half as much.

The state-owned land is tax exempt, so Triple Five is making payments in lieu of taxes to East Rutherford. The developers claim in a lawsuit that the mall project was assessed well beyond other New Jersey properties of the same type. But PILOT agreements prohibit refunds or anything similar, according to court documents.

“American Dream, naturally, would want that assessment to be as low as possible so they pay out the least amount,” East Rutherford Mayor Jeffrey Lahullier said.

Robert Clifford, a real estate appraiser with RDC Appraisals in Montvale, noted to the publication that there’s no real comparison to be made with other projects in the state.

Triple Five is trying to claw back hundreds of millions as the financial picture at the mall looks rosier than it has for years. Sales grew in each of the past three quarters. Occupancy is on the rise, too, according to JLL executive vice president Charles Cristella: The mall was 87 percent leased as of July.

Still, there are plenty of fires to be put out beyond the incident that shut down the indoor ski slope for months. Bondholders have been stuck for years waiting to recoup their investment in $287 million in municipal bonds, though a reprieve came at the end of the summer.

The owner of the $5 billion mall also faces lawsuits from lenders, litigation over injuries and even a union drive.

— Holden Walter-Warner