RCA in the commercial property press:

Commercial Property Developer Colony May Quit on Xanadu

Bloomberg reports: Meadowlands Xanadu, a massive $2 billion entertainment and shopping complex in New Jersey that has been under development for more than four years, is facing another setback according to Bloomberg News. Colony Capital LLC, backed by billionaire Thomas J. Barrack Jr., may be forced to relinquish control over the project, after investing several hundred million dollars into the center to-date.

According to Real Capital Analytics' Ben Thypin, "If Colony hands over the keys, that would indicate the firm doesn't think Xanadu is [the] most productive use of their resources despite the significant amount of capital they've already committed...that shows it's uncertain as to when Xanadu will produce income, much less become profitable."

Originally scheduled for completion in 2007, Xanadu has been plagued by problems since construction began. Colony, along with a group of partners, took over the project in 2006 from Mills Corp. after the company ran out of funds. Lehman Brothers was forced to abandon the project as a source of credit after filing for bankruptcy in 2008.

Articles related to this topic:

 Retail Center Sells for $50 Million in Cash
 Retail Sales Down in the first half of 2010
 Second Quarter Surge in CRE Market
 Foreclosure Proceedings Not Deterring Stuy Town's Newest Suitors
 Retail Property Sector Set for Banner Q4

Posted by: Nina Turner

<< Prev

Next >>