Pfeiffer: American Dream mall gets construction lender lifeline

Triple Five, owner of the American Dream mall in New Jersey, has struck a deal with a group of creditors led by JP Morgan that grants the developer a four-year extension on overdue construction debt.

The loan extension gives Triple Five some much-needed breathing room as it waits for an expected increase in big-box retail traffic, said Marc Pfeiffer, Assistant Director at Rutgers University’s Bloustein Local Government Research Center.

“It’s been reported that occupancy is increasing, along with increased visitor count, expanding attractions, attracting more public attention to it,” said Pfeiffer. “Spreading the debt over time generally provides additional free cash flow that can go into other operations.”

“The offset is added interest later on,” he continued,”but at a time when presumably there is greater cash flow that can support the obligation.”

Triple Five still faces credit pressure from two municipal issuances that helped bankroll the construction.

The Bond Buyer, November 18, 2022