With a New Plan and Name, Can Xanadu Become the Next Mall of America?
New York Times reports: It recently came to light that the same firm that currently owns and operates both the Mall of America, in Bloomington, MN, and the West Edmonton Mall in Alberta, CAN, has divulged its plan to assume control over the beleaguered development of Xanadu, the 2.4 million square foot mixed-retail complex in Meadowlands, NJ. Triple Five, the firm started by the Ghermezian brothers, is considered “wildly successful” on the high performance of both the Mall of America and West Edmonton Mall. But can their previous accomplishments ensure a successful turnaround at Xanadu?
The New York Times outlined some of the details of the duo’s plan for Xanadu, which has been years in development and already cost nearly $2.0 billion to complete. Triple Five has proposed expanding the mall to 3.0 million square feet, adding a water park and ice rink, and changing the name of the property, which has garnered negative connotations over the course of its development, to American Dream@Meadowlands.
Whether Triple Five will be successful in their bid to turn around the troubled mall development remains to be seen. The firm has had its share of problems as well: Triple Five became over-extended in Las Vegas during the real estate boom. Now, according to data recorded by Real Capital Analytics, Triple Five has faced lenders foreclosing on five of its loans to date, with another four loans in distress. The largest loss Triple Five has incurred so far has been on the development loans taken out for 60 acres to build the “Great Mall of Las Vegas,” which fell into trouble and the site was surrendered to the lender in 2009 when that market collapsed.
View the full article on New York Times: With a New Plan and Name, Can Xanadu Become the Next Mall of America?
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Posted by: Nina Turner