The American Dream Mall, New Jersey’s behemoth shopping destination located in the Meadowlands, saw its losses quadruple in 2022 as it struggled to attract retail tenants amid sagging customer traffic and expenses soared amid a heavy debt load, according to recent filings.
In the years since its opening just five months before the pandemic struck in 2020, the 3.5 million-square-foot mall — which is home to an indoor ski slope, the Nickelodeon Universe Theme Park, and a whopping 450-plus stores — hasn’t caught a break.
Aside from coronavirus-driven shutdowns and construction delays, the mall has been slammed by a series of one-off events, such as when a decorative helicopter figurine came crashing down into a pool full of children back in February. In December, a 24-year-old Air National Guard member died snowboarding after hitting his head in a freak accident at Big Snow American Dream.
According to a draft balance sheet, the megamall’s expenses nearly doubled year over year, totaling an eye-watering $428 million in 2022 — a drastic increase from 2021’s $232 million in overhead.
Non-operating expenses, such as interest payments on debt and restructuring costs, ran the mall another $350.3 million, the three-page document shared with the Municipal Securities Rulemaking Board’s EMMA website showed. Financial expenses, which include debt payments, hit $189 million in 2022.
Meanwhile, revenue last year only grew 6%, to $183 million — far below the billions its owner Triple Five initially projected — as 15% of the American Dream Mall remains unleased just three years after its initial debut in October 2019.
The Post has sought comment from Triple Five and the American Dream Mall, which is located just 11 miles outside of New York City.
Triple Five still also reportedly owes its lenders, led by JP Morgan Chase, a staggering $1.7 billion in construction financing loans, according to local news site NJBIZ, a fraction of the 65 billion it took to construct.
In November, JPMorgan gave Triple Five — which also operates fellow megamalls, Minnesota’s Mall of America and Canada’s West Edmonton Mall– a four-year extension on the loan, setting a new maturity date of October 2026, the outlet reported.
The Canada-based shopping and entertainment complex company also missed an $8.8 million semi-annual interest payment to bondholders in August 2022, a US Bank Trust Co. notice showed, and skipped another interest payment on an $800 million municipal bond last June.
Despite the American Dream Mall’s dismal financial state, its president and chief executive Don Ghermezian has remained positive throughout his minimal public statements.
When JP Morgan agreed to a repayment extension late last year, Ghermezian said: “We are pleased that our lenders … 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’s new flagship retail stores, first-to-market concepts, celebrity events, and one-of-a-kind entertainment and attractions will further solidify our position as revolutionaries in the industry.”
This story originally appeared on NYPost
