Monday, September 11, 2006

Another wreck on the turnpike?

From the Record:

Xanadu's likely savior takes risks, reaps rewards

Just a few weeks ago, Meadowlands Xanadu was looking like another wreck on the turnpike.

Years behind schedule, the ballyhooed retail/entertainment attraction was just a steel skeleton sitting forlornly in the parking lot of the Meadowlands Sports Complex. Costs had ballooned to $2 billion and its developer, the Mills Corp., was in financial crisis. Critics wondered if the project was damaged beyond repair.

Then Colony Capital arrived on the scene, announcing a proposal that could jump-start the project. The Los Angeles-based private investment company has a track record that may bode well for the Meadowlands. Its principal, Tom Barrack – described in a recent Fortune magazine cover story as "The World's Greatest Real Estate Investor" – built his fortune with a contrarian strategy of finding opportunity where others see only problems.
...
In its proposal announced Aug, 22, Colony said it would pump in up to $500 million and secure additional financing. Colony, which is known for its resorts and casinos around the globe, would be calling the shots and Mills would fade into the background.
...
"It's like starting on the 50-yard line," said Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consulting and investment banking firm. "One of the things they see is that a lot of the work and money has already been spent and they believe the project can be completed."

Even skeptics concede that having a company with Colony's resources and reputation will bring stability and help attract tenants. Mills, on the other hand, is facing liquidity problems, a federal Securities and Exchange Commission investigation and shareholder lawsuits.

6 Comments:

Anonymous Anonymous said...

just watch, these guys are not
stupid like mills.

the NJ taxpayer will pay for
the shortfall .

They are in the Drivers seat.

Goldfinger,over at the sports
authority is about to be taught
a lesson.

9/11/2006 06:41:00 AM  
Anonymous Anonymous said...

So, what about their plans for the site? Is Colony going to stick to the original layout?

9/11/2006 11:55:00 AM  
Anonymous Anonymous said...

they have not even closed the deal
yet, when they do. Goldfinger
is going to be taught a lesson.

Of course it will come out
of the NJ taxpayer pockets.

Thats the way the capital markets
work. Colony will only do the deal
if they do it their way. After all
they got the mmmmmmmmmmmmmoney.

They dont need the deal. Mills is
finished and the project will
take on a different tune.

No matter what goldfinger says.

And Cozine, he will just be happy
to have another firm continue the
build. It will just turn into
another NJ MALL. Nothing more ,nothing less.

9/11/2006 01:55:00 PM  
Blogger grim said...

I have a feeling Tom & Co. are looking for the deal to include slots and a fancy hotel at the racetrack. Some have called this icing on the cake. I think it's the whole cake.

Nobody wants gambling in North Jersey.. But what happens when the politicians push for VLTs at the racetrack in an attempt to lower property taxes?

jb

9/11/2006 02:04:00 PM  
Anonymous Anonymous said...

AC will never go for it.

This will be another NNJ Mall.

Traffic, tax breaks, low paying
retail jobs,

And the mall will turn out
to be just like all the rest.

9/11/2006 07:10:00 PM  
Anonymous Gary said...

Corzine is the worst.

Got home tonight to see that I had an email from our gym.

Corzine has instituted a 7% gym tax.

Adding another $12.60 a month to our total bill.

Thanks for more taxes Corz! I didn't think we had enough already!

9/11/2006 10:50:00 PM  

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