Development of this $ 1.068 billion shopping center in New Jersey Meadowland began in 2017 and reached its opening day in the same way that the Covid-19 pandemic broke out. After that, it was necessary to break into the debt reserve in order to pay interest on August 1, 2020. This initially dropped the price of bonds to 87, but the strong local market combined with the 7% coupon rate for these bonds eventually brought the price back to 111. As a further encouragement, the developers arranged a tour of the facility for current and potential investors on September 11, 2021.
The facility is 3.2 million square feet in size and is larger than a typical or super-regional mall. It is reported that 99% is leased. There are virtually no financial statements filed in the MSRB, and all references to actual financial statements are merely status letters. I’m also worried that none of the credit rating agencies provide ratings. This is unusual for such a big problem, especially as developers expect to invest more than $ 500 million in projects and need to raise another $ 1 billion. This is probably the origin of the term “dream” in the title.
The facility is in dispute with New Jersey over the property tax base of the facility. This controversy may be related to the fact that the developers went to the Wisconsin public financial authorities to approve these bonds, rather than the New Jersey authorities as usual. Getting property taxes and other concessions before starting such a project is a normal step before starting such a large project. Here, for some reason, they ignored this and decided to go out of state for approval. I just wonder why such a measure was taken. Over time you will know if this was a wise decision. CUSIP 74446 HAD1