American Dream Mall lost $60 million last year due to ongoing funding problems – Commercial Observer

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That American Dream The mall’s money woes continue to grow.

The 3.5 million square foot Megamall in Rutherford, NJ lost nearly $60 million last year. Now its owner Triple Five group try it get a loan extension to repay its $1.7 billion construction loan securities filings first reported by Bloomberg.

American Dream has a total of $173 million in revenue in 2021 — nearly $100 million of which came from attractions and about $49 million from rental income — while it had $232 million in expenses, securities filings show .

The bulk of the losses, $73 million, were categorized as “non-operating expenses,” according to the filings, followed by $53 million in payroll costs.

A spokesman for American Dream declined to comment.

The American Dream worth $5.7 billion It took almost two decades and three developers to build it The mall finally opened in October 2019, just in time before the pandemic hit the United States. It reopened in October 2020 and has seen one steady increase in buyersbut was in debt and struggling to make loan payments.

In February, the mall almost cleaned out its reserve account to cover a $9.3 million bond payment, leaving just one left meager $820 in the account.

According to Bloomberg, the company recently hired legal and financial advisors to help it pay off its $3 billion debt while Triple Five has been trying to get a four-year extension to pay off its construction loans.

American Dream’s financial woes have already resulted in Triple Five losing a 49 percent stake in the company Mall of America in Bloomington, Minnesota, and Edmonton Mall in Canada. Kurt Hagenan executive at Triple Five, previously told Bloomington officials Rather than suffer from a pandemic, “if American Dream had burned down or a hurricane had hit it, it would have been a lot better off financially because we would have had insurance coverage.”

The mall’s indoor ski slope was hit by a fire in September 2021, leading to its closure. The runway is scheduled to reopen over Memorial Day weekend, Bloomberg reported.

Nicholas Rizzi can be reached at [email protected].

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