(Bloomberg) The owners of New Jersey’s American Dream project are likely to lose almost half their stakes in two other mega malls used as collateral to finance the $5 billion shopping and entertainment center.
A Mall of America official disclosed last week that lenders are likely going to take a 49% equity stake in the Bloomington megamall after the pandemic hampered its operations elsewhere.Why it matters: Valued at $1.9 billion, MOA is perhaps the largest real estate asset and tourism driver in the state — and lenders are likely have a very large voice in what happens to its future.Get market news worthy of your time with Axios Markets. Subscribe for free."We have to wait and see if there is any impact [to Bloomington]," Bloomington Port Authority administrator Schane Rudlang told Nick. "We continue to monitor the situation." How it happened: MOA owner Triple Five Group took out a $1.67 billion construction loan to build the American Dream Mall in New Jersey. As collateral, Triple Five put up a stake in MOA and the West Edmonton Mall in Canada. American Dream opened last March, but has been hampered by pandemic capacity restrictions, causing cashflow issues, Kurt