The American Dream megamall project in New Jersey, opened in 2019, just in time for COVID-19. The project has just spent the last of its reserve fund by making a $9 million interest payment, leaving only $820 in their reserve account. Another multimillion-dollar interest payment is coming in a few months.
CNBC and ZeroHedge both have stories about the problems bondholders and investors face, but ZeroHedge points out that JP Morgan, Goldman Sachs, and Soros together have over $1 Billion in development loan exposure to the project.
The story is interesting. Both links are provided as follows:
ZeroHedge: American Dream Megamall Has Just $820 In Its Reserve Account After Making $9.3 Million Interest Payment
Neil Shapiro, a New York real estate attorney, said of the project last year: “It’s been like watching a train wreck that goes on forever. There aren’t a lot of projects that lose at least $3 billion that we’re still talking about as projects.” The Ghermezian family had already hired adviser Houlihan Lokey Inc. and the law firm of Weil Gotshal & Manges to help them with restructuring.
CNBC: American Dream megamall nearly empties its reserves to make a bond payment