American Dream owner Triple Five Group has reportedly reached a deal with lenders to get a four-year extension for repaying its $1.7 billion in construction financing loans, according to NJBIZ. The group, led by JPMorgan Chase, has set a new maturity date of October 2026.
“American Dream’s success continues to grow with dramatically increasing traffic and spend at the complex,” said Don Ghermezian, President and CEO of American Dream in a statement. “We are pleased that our lenders, led by JP Morgan, share in our vision and recognize Triple Five and American Dream’s successful and impactful contribution to the global retail and entertainment landscape.”
American Dream missed a payment of $8.8 million on Aug. 1, 2022, and the balance in the reserve account previously used to make payments on the loans is $862.12. However, the missed payment didn’t constitute a default nor did it require the megamall to pay back the $287 million loan it was for.
The more than 3-million-square-foot shopping center has a troubled past, including more than a decade of construction before opening in October 2019, just months before COVID-19 forced it to shut down for an extended period. The mall reopened late in 2020 but continued to suffer from the overall decline in foot traffic caused by the pandemic, and ultimately reported a nearly $60 million loss in 2021.
However, American Dream has persevered. The space puts an emphasis on experiences with features including an indoor ski slope, amusement park and water park, which could resonate with what shoppers look for when shopping physical stores. The mall also has reached an 82% occupancy rate and become home to the Toys ‘R’ Us global flagship store.