NJ’s American Dream Mall Has Value Cut $850 Million by Judge
(Bloomberg) – A tax court judge reduced the evaluated value of New Jersey’s American Dream Mega Mall on Thursday by 850 million dollars, which reduced the valuation of the property about 50% this year.
Reduction will gain a profit to property owners who try to reduce valuation payments, but receive a blow to bond holders with a debt of approximately 800 million dollars supported by payments called payments instead of taxes or pilots.
American Dream Spokesman Gregg Schwartz did not respond immediately to the request for comments.
Judge Michael Gilmore, an amusement park, water park and ski slope, including 3.5 million square meters of space for the current tax year should be evaluated as approximately $ 1.65 billion.
The East Rutherford district, where the venue is located, evaluated the property at $ 2.5 billion for the quarter that ended on June 30th. This fell from $ 3.3 billion for the previous assessment of the shopping center. From 2019 to 2025, American Dream appealed tax assessments from East Rutherford. Gilmore did not decide to evaluate the previous years.
The new value evaluated, American Dream will be in a hook for the owners of the municipal debt of the municipal debt of the municipal debt of the municipal debt of the municipal debt of the municipal debt of the municipal debt – less than half of the annual $ 54.1 million interest rate.
Nuveen LLC has approximately 90% of the American Dream Municipal Bonds supported by pilots. A Nuveen spokesman Sally Lyden refused to comment.
The 800 million dollar pilot debt was part of a tax -exempt municipal bond for $ 1.1 billion to finance the construction of the shopping center. State officials said the project would create tax revenues and jobs by presenting the project as a support to the economy of New Jersey.
For American dream owners, lawyers argued that the assessment of East Rutherford has significant defects, including the use of artificial low capital rates – a measure of profitability used to assess the return rate of the real estate.
Complex, Short Hills, Westfield Garden State Plaza, Willowbrook Shopping Center, Riverside stores and Six Flags Great Adventure came together.
“Considering the comparisons, the comparison does not require a tax assessment expertise to recognize the ridiculousness of American Dream’s evaluations,” he said.
If the American Dream wins tax appeals for 2019 – 2024 tax years and the value of the property continues to increase sufficiently in the future or does not increase sufficiently, the likelihood of investors will be at greater risk. According to the bond documents, it is not an assumed event that interest or the manager does not pay when it is due.
According to a bond file, the director of the 800 million dollar bonds planned in 2027, 2037, 2042 and 2050 matured in the balloon payments planned in 2027, 2037, 2042 and 2050. The Board of Trustees of the bonds was about 38 million dollars of reserves to cover debt service deficiencies since December last year.
If the Board of Trustees do not have enough money to make the main payments, the maturity of the bonds shall be extended full or until they are paid on December 1, 2056. If bonds are not paid until then, pilot bond holders do not have the right to pay further.
(Updates to include details from bond holders and the results of the reduced value assessment.)
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