RCA in the commercial property press:

Xanadu Makes List of Troubled Properties

GlobeSt reports: A list of troubled properties compiled by research firm Real Capital Analytics includes the massive Xanadu project here as well as a busted mixed-use development in Ft. Lee. All told, nine properties in the Garden State were found to be in some form of fiscal distress.

Earlier this month, New York City-based RCA released its "Troubled Assets Radar" report for the New York Metro area. The firm found New York City and its surrounding suburbs were home to 189 troubled assets valued at nearly $9.2 billion. RCA defines a troubled property as one that is in foreclosure, bankruptcy or undergoing a loan restructure.

On the list was Xanadu, a sprawling 4.5-million-square-foot retail/entertainment development in the Meadowlands. The complex was to open in August; however, it debut has reportedly been delayed due to funding difficulties.

Yet Dan Fasulo, managing director and head of research for RCA, tells GlobeSt.com that Xanadu will eventually get built and be successful. "It’s one of those projects that is too big to fail," he says. "The stakeholders have way too much capital at stake not to finish the project. At this point, obviously, they are going to be opening in a very difficult economic environment. They have already pushed back the opening a couple of times. I’d be surprised if it opens before the end of the year. That being said, it’s one of those mega projects, like a Disney World, that might take many years for it to become profitable. But at some point, it will be a success."

Fasulo maintains that naming these troubled properties will ultimately be good for the industry. "At the end of the day we think it’s going to be a net plus because it is really going to help get the skeletons out of the closet and hopefully get us moving again," he says. "The market is not going to move forward until the distressed assets are cleaned up from the real estate world."