JPMorgan Chase, Goldman Sachs and a team of real estate investors are set to take part in the Mall of America, the largest shopping center in the United States, after its owner defaulted on another stake. Multibillion-dollar development In New Jersey.
The banks were in the final stages of securing the interests of minorities at the Minnesota Mall, and according to people involved in the deal, its owner, Triple Five Group, has consulted with a consortium of lawyers and other donors.
Triple Five has taken a 49 percent risk to the Mall of America and West Edmonton Mall as collateral for 1.2 billion in security. Construction In 2017 for the American Dream Project in New Jersey.
The 5 billion project was a huge undertaking, given its proximity to Midtown Manhattan as a tourist destination, and promoted as a luxury department store tenant, a Nickelodeon theme park and indoor ski resort b but the carnavirus has been circulating across the U.S. for weeks. The first part of the mall opens first. Barnes and Lord & Taylor have backed up several large tenant projects, including two departmental store chains that have closed completely.
Goldman, Barry Sternlich’s Starwood Capital, real estate investor CIM Group, Soros Fund Management, asset manager Wafra and J. Sugarman-led asset investment group Easter, as well as JMMorgan were the largest donors of American Dream construction loans.
The restructuring was complicated by the number of donors involved, but the deal could close earlier this week, two people added, although they warned it could still be delayed.
Even after giving the equity to the donors in the two malls, there will be thorny questions. One person added, the donors are interested in keeping their mark in the long run and it is not clear if they can continue their efforts to sell their position.
The American Dream project ran into problems after it was conceived more than 20 years ago. Construction began in 2003 when the Brooklyn Nets basketball team – then known as the New Jersey Nets – still played at the New Jersey Midlands Arena. This period of development is known as Janadu. Its original developer, Mills Corp., eventually dropped out, as did its successor, Colony Capital.
“It would have been much better if the American dream had burned out or if a hurricane had caused financial damage, because we would have been covered by insurance,” Triple Five executive Kurt Hagen told a city council meeting earlier this month. “This epidemic that we didn’t see was not covered and this is the worst case scenario imaginable.”
Triple Five, a Gheremizian family investment group, will continue to own most of the American mall after a 49 percent change to America donors.
It recently discussed its mortgage at the mall to get out of trouble, which was due until December. End-payers only agree to pay interest until the money matures.
Regulatory filings for securities backed by the Mall of America mortgage program Triple Five are still trying to pay delayed rent from tenants.
All parties declined to comment or did not respond to requests for comment.