One of the biggest questions of this era in the retail real estate industry might be whether the Xanadu Meadowlands project in the New Jersey Meadowlands ever gets built. The project, an ambitious undertaking combining a sports and entertainment complex, a regional mall and office and hospitality space, exemplified the bold thinking and excesses of the boom years. At 4.5 million square feet, it was set to be the largest center of its kind in the U.S. and the third largest in the world. But it kept being delayed, first by the troubles at the Mills Corp., then by the credit crisis and now by the apparent lack of a developer brave enough to try to sort out the mess the project has turned into.
A few weeks ago, the lenders on the project opted to take Xanadu Meadowlands back from its most recent owner, Colony Capital LLC. Some industry sources felt that was because Colony Capital insisted on leaving much of the original plan intact, in spite of lack of demand for so much retail and entertainment space in the market. This summer, news emerged that the Related Cos. was taking over the responsibility for the Xanadu Meadowlands. But now it turns out Related never signed an agreement to complete the center. Instead, the lenders are bringing in Jones Lang LaSalle to manage the project while they continue negotiating with potential operators. For more on this story and other news about retail and retail real estate, follow the links below:
- Jones Lang LaSalle to Manage Xanadu (NorthJersey.com)
- Marketing Fanciful Items in the Lands of Make Believe (The New York Times)
- How to Get Loyalty Card Prices Without Loyalty Cards (The New York Times)
- Retail REITs: Trouble Ahead (The Street)
- Good Housekeeping Sets Up Shop in Mall of America (Mediaweek)
- Tenants, Landlords Could Face Dramatic Changes from New Lease Accounting Rules (CoStar Group)
- Westfield Eyes Asset Sales to Raise Development Cash (The Sydney Morning Herald)
- Burger King Agrees to $3.3 Billion 3G Capital Offer (Bloomberg)