Active Stocks
Sat Mar 02 2024 12:49:58
  1. Tata Steel share price
  2. 155.15 3.43%
  1. HDFC Bank share price
  2. 1,430.35 -0.06%
  1. State Bank Of India share price
  2. 773.05 0.49%
  1. Tata Motors share price
  2. 988.40 1.15%
  1. Wipro share price
  2. 522.65 0.67%
Business News/ News / NJ’s American Dream Mall Sees Sales Slow in Final Months of 2023
BackBack

NJ’s American Dream Mall Sees Sales Slow in Final Months of 2023

New Jersey’s American Dream megamall didn’t get much of a boost from the holiday season.

NJ’s American Dream Mall Sees Sales Slow in Final Months of 2023Premium
NJ’s American Dream Mall Sees Sales Slow in Final Months of 2023

(Bloomberg) -- New Jersey’s American Dream megamall didn’t get much of a boost from the holiday season.

The municipal bond-financed project said sales increased by 1.4% for the final three months of 2023, a slowdown from its previous double-digit quarterly growth, according to a new filing. 

The 3.5-million-square-foot complex, home to an indoor ski slope, amusement and water parks, reported gross sales for retail, attractions, entertainment, dining and parking of $153 million, compared with $151 million the prior quarter. Last year, American Dream’s sales rose 31% to $553 million.

While sales are picking up, they’re well off the pace of the nearly $2 billion that a 2017 study projected the mall would bring in during its first year of operations. Leasing also remains sluggish. The venue, which opened in October 2019, was 86% leased as of Dec. 31.

Gregg Schwartz, an American Dream spokesperson, didn’t respond to a request for comment. 

Triple Five Group, the mall’s owner, borrowed about $1.1 billion in the municipal bond market to help finance the $5 billion project. About $800 million of the debt is backed by payments in lieu of property taxes, while another $290 million is payable from economic development grants from the state of New Jersey. 

Nuveen LLC is American Dream’s biggest municipal bond holder with about $705 million. 

American Dream has drawn on reserves to pay interest on the debt backed by the property-tax—like payments and is appealing its tax assessments from the borough of East Rutherford for the last five years. A successful tax appeal would further reduce payments to bondholders. The bonds traded Feb. 2 at 96 cents on the dollar to yield 7.35%. According to a bond document dated Dec. 4, the reserve account has a balance of $43.6 million.

Meanwhile, a debt-service reserve fund for the roughly $290 million in state-grant backed bonds has been exhausted. On Dec. 20, a $22.5 million block of the bonds traded at 73 cents on the dollar to yield 12.3%.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Feb 2024, 12:12 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App