The American Dream mall has secured a deal with lenders that will give it some breathing room with a four-year extended debt maturity, according to a release from owner and operator of the mall Triple Five.
J.P. Morgan led the financing deal, according to the release.
The massive shopping and entertainment center in New Jersey has struggled financially since the pandemic began. In August, Triple Five missed an $8.8 million debt payment tied to American Dream, and not for the first time this year.
The financial struggles are tied to the mall itself, with its performance under pressure. For 2021, American Dream lost $60 million as expenses piled up well beyond the rent revenue it took in.
Last year, after the company defaulted on debt tied to American Dream, a group of lenders that included J.P. Morgan seized a stake in Triple Five’s Mall of America in Minnesota, which was used as collateral on American Dream debt.
American Dream had the misfortune of scheduling its grand opening for spring 2020. With COVID-19 beginning its rapid spread, the mall was left closed for months in 2020. Before the year was out, the mall was already laying off workers and missing mortgage payments.
Since then, the mall has steadily added new attractions and flagship stores. In its release this week announcing the financing deal, the mall’s CEO, Don Ghermezian, said that “American Dream’s success continues to grow with dramatically increasing traffic and spend at the complex.”
