US largest mall (Mall of America), 2nd largest (Dream) struggle.miss debt payments, lose tenants

[Demovictory9]

Both malls were in trouble before the pandemic. The 2nd mall was built with tax incentives and other assistance from tax payers. if the malls close, how can these MASSIVE structures be repurposed?

https://www.pymnts.com/news/retail/2020/megamalls-like-mall-of-america-and-american-dream-face-mega-problems/
Megamalls Like Mall Of America And American Dream Face Mega Problems

Megamalls are having mega problems. The two largest U.S. malls — Minnesota’s Mall of America and New Jersey’s American Dream mall — are struggling, with the company that owns both recently skipping a third straight payment on the Minnesota property.

Located in Bloomington, Minn., the Mall of America features not only 500 stores, but also some 28 amusement-park rides, an aquarium and more. But it was a victim of the North Star State’s mid-March shutdown of non-essential retail and continues to struggle even after reopening on June 10. The mall had already long suffered from decreased foot traffic even before the pandemic.

The recent missed payments were reported by the Minneapolis/St. Paul Business Journal, citing notes from mortgage “special servicer” CWCapital. In commercial real estate, special servicers aim to help resolve troubled commercial loans. According to the Million Acres real estate news source, servicers work with borrowers who have defaulted on a term or clause of a loan to determine alternative arrangements to foreclosure.

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https://www.6sqft.com/no-reopening-plans-for-njs-american-dream-mall-as-tenants-flee-and-owner-skips-mortgage-payments/

No reopening plans for NJ’s American Dream mall as tenants flee and owner skips mortgage payments


After nearly two decades of construction delays, New Jersey’s mega-mall American Dream partially opened last October. Six months later, the three-million-square-foot venue was forced to close its doors because of the coronavirus pandemic. Now, even as the state continues its gradual reopening, there is still no reopening date for the $5 billion mall. As NJ.com reported, owner Triple Five Group has missed three consecutive mortgage payments and retail tenants are getting out of their leases at the space.

Before it closed in March, 8 percent of American Dream had opened to the public, including the Nickelodeon-branded indoor theme park, an NHL regulation-sized ice skating rink, golf course, and an indoor ski slope. The rest of the mall was set to open in phases, which included an observation wheel “nearly as tall as the Statue of Liberty,” a 400-seat food hall, up to 18 full-service restaurants, and retailers like Saks Fifth Avenue, Tiffany & Co., Dolce & Gabbana, Zara, H&M, Uniqlo, and more were expected to open at the mall this March.

The mall lost two tenants prior to the pandemic, Lord & Taylor and Barneys New York, both of which got out of their lease at the mall after closing stores in New York. According to NJ.com, other possible tenants currently considering ditching their space at American Deam include Forever 21, Victoria’s Secret, and The Children’s Place, which are all struggling amid the pandemic.

Tenants CMX Cinemas and GNC both filed bankruptcy because of COVID-19, with the latter no longer opening at the mall, according to the Commercial Observer.

https://therealdeal.com/2020/06/30/new-jerseys-american-dream-mall-is-a-financial-nightmare/

New Jersey’s American Dream mall is a financial nightmare
The coronavirus pandemic has dealt a heavy blow to the mall’s viability

Things seem to be going from bad to worse for the American Dream mall in the Meadowlands.

Six months after the mall closed its recently opened doors because of the coronavirus pandemic, the bonds funding the project have decreased in value, according to NJ.com.


A year ago, the $1 billion worth of bonds on the project were trading at $120 apiece and yielding 4.25 percent, but as of April they’ve dropped to $93.72 with a 7.5 percent yield.

Owner Triple Five Group, headed by the Ghermezian family, in June missed its third consecutive $7 million payment on the $1.4 billion mortgage for the Mall of America in Minnesota, which is being used as collateral for the American Dream mall.

At the same time, contractors have filed liens for more than $13 million in unpaid work at the New Jersey complex, which totals about 3 million square feet.

On top of that, American Dream has lost several tenants and prospective tenants since the pandemic hit, including Lord & Taylor and Barney’s. Nutritional supplement retailer GNC and CMX Cinemas filed for bankruptcy. GNC already announced it plans to close its American Dream location.

Triple Five hasn’t released any reopening plans for the mall, which partially opened less than a year ago after 18 years of starts and stops. The pandemic forced it to close just as it was preparing to open 60 to 100 more stores, restaurants and a water park.

Some stakeholders are optimistic though. State Assemblymember Gary Schaer hopes that Triple Five’s decision to emphasize entertainment will help it recover if it does reopen.

[riversedge]

1. Mall of America features not only 500 stores, but also some 28 amusement-park rides, an aquarium and

..........Mall of America features not only 500 stores, but also some 28 amusement-park rides, an aquarium and more. But it was a victim of the North Star State’s mid-March shutdown of non-essential retail and continues to struggle even after reopening on June 10. The mall had already long suffered from decreased foot traffic even before the pandemic.

[madaboutharry]

2. I have been to the Mall of America a few times.

Last edited Sun Aug 2, 2020, 12:37 PM - Edit history (1)

I absolutely hate it. Every time I have been there I ended up with a migraine. It is just too much.

I find the IKEA across the street to be more interesting.

[Demovictory9]

11. agreed, it was too much. I explored 30% of it and left.

[BannonsLiver]

14. Why would you go there then?

[madaboutharry]

15. Other people wanted to go.

It isn't only about me. Sometimes someone else wants to do something and you have to say "ok.'

[no_hypocrisy]

3. Is it feasible to turn them into planned communities with housing and

small businesses? A planned urban development?

[Demovictory9]

13. mall buildings don't seem easy to convert to housing... the proportions are so weird

[Sherman A1]

4. Yes, malls have been in trouble for a long time now.

Overbuilding, changing shopping habits and many more headwinds (many of them self inflicted). They will need to be repurposed or torn down to use the real estate for something different. A few will still exist although the mix of occupants will change and in most cases very dramatically.

[pfitz59]

5. meanwhile the environment gets raped

"land" is more than a building site. greedy assholes

[matt819]

6. You mean...

They didn’t have six months of living expenses in case of emergency?

I’m shocked.

And who opens a new mall in 2019? Do they have a door-to-door encyclopedia sales division? How’s the black-and-white TV unit doing?

[hatrack]

7. Don't forget the TV vacuum tube testing units in the grocery stores!!

We cannot allow a TV vacuum tube testing gap!!!!

[FoxNewsSucks]

8. My first 2 thoughts,

as you said who opens a giant mall in 2019? Malls have been closing for years.

And Mall of America opened in 1992, shouldn't their debts be paid off by now?

[Demovictory9]

10. the mall was 20 years in the making.. I guess so much money spent, decided to complete it in 2019

but yeah, wasn't the best timing. Didn't need to be a mall-expert to see it was not going to be viable.

[Klaralven]

18. It must have seemed like a good idea in 1994

https://en.wikipedia.org/wiki/American_Dream_Meadowlands#Meadowlands_Mills_(1994%E2%80%932002)

26 years of throwing money in a wetland.

[ProudMNDemocrat]

9. It has been years since I have been to MoA.....

I drive by it on 494 to go to the Park and Ride to use the Hiawatha Line to go into Downtown Minneapolis for Twins and Vikings games, or dinner downtown. But to xhop? Not so much.

Since the closing of the American Girl Doll store at the Mall of America, I have been having a steady stream of Custom Doll Clothes orders for outfits that cost less than what they were charging for clothes made in China for pennies on the dollar, selling for almost 100 times. I am charging $10 an hour for Doll clothes, which is the current Minnesota Minimum wage. People are willing to pay that for a nicely made ensemble for girls of all ages.

[Demovictory9]

12. nice. a young relatiive of mine went through the American Doll phase

parents couldn't afford all the accessories

[Polybius]

16. The American Dream is actually the third largest

Not second, as of now.

https://en.wikipedia.org/wiki/List_of_largest_shopping_malls_in_the_United_States

Sorry for the nitpick.

[Demovictory9]

17. Wow..southcoast plaza is 4th..must be a very distant 4th

[BumRushDaShow]

20. Yes - King of Prussia Mall outside of Philly is 2nd but was 1st before Mall of America was built

Haven't been to KoP in probably 40 years, the size even then was obscene and it has been expanded twice since then.

King of Prussia Mall


And I have been to MoA as well, which is actually a more "compact" mall vs KoP which is the personification of a lengthwise sprawl - notably when they expanded and connected two large sections.

Mall of America

[Books_Tea_Alone]

19. I live close to American Dream..a nightmare to get to

And once you are there they charge 10-15 to park! I have never been but since we have about 10+ malls within a 30 min drive all with the same stores and restaurants, I do not see the point. I have never been and would never go but I know my Trumpinista brother went "skiing" there last winter and supposedly was terrible