The Real Estate Bloggers

New Jersey’s Xanadu Mall Heading To Creditors

Posted: 09 Aug 2010 06:12 AM PDT

The Xanadu mall project in New Jersey’s Meadowlands has been a mess since it’s early days. The project has ballooned out of control and now has an estimated price tag of 2 billion dollars.

Xanadu-mall

Now Colony Capital LLC is expected to turn the keys of the project over to it’s creditors led by Dune Capital Management. The black hole that is Xanadu keeps growing. The project, originally put together by Mills Corp, has had a rough history. It was created and designed in the peak of the real estate market and has enough invested in it that no one wants to pull the plug.

Originally expected to open in 2007, delays have been numerous mostly due to funding issues. Now we will have to wait to see what the creditors do with the project.

Billionaire investor Thomas J. Barrack Jr.’s Colony Capital LLC may be forced to relinquish control of Meadowlands Xanadu, the unfinished $2 billion shopping and entertainment complex in New Jersey, almost four years after leading a takeover of the project, according to four people with direct knowledge of the matter…

“If Colony hands over the keys, that would indicate the firm doesn’t think Xanadu is most productive use of their resources despite the significant amount of capital they’ve already committed,” said Ben Thypin, an analyst at Real Capital Analytics Inc. in New York. “That shows it’s uncertain as to when Xanadu will produce income, much less become profitable.” via Bloomberg

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New Jersey’s Xanadu Mall Heading To Creditors