EAST RUTHERFORD, NJ-Meadowlands Xanadu, the $2-billion unfinished New Jersey shopping mall, was taken over by lenders from a group led by Colony Capital LLC after construction stalled. The creditors, including Credit Suisse Group AG, Capmark Financial Group Inc. and an affiliate of Fortress Investment Group LLC, had given the Colony-led group until yesterday to raise additional equity to no avail.

The lenders are negotiating with new developers to complete the project, the group said in a statement. The Colony-led group had been in talks with New York developer Related Cos. about partnering on Xanadu, and the lenders plan to continue discussions with Related and other potential developers. As part of these negotiations, the new operator will be required to accelerate completion of the project, which will include refinishing the widely criticized exterior of the building and implementing a full re-branding campaign for the project.

The complex's opening will generate thousands of jobs and tens of millions of dollars in sales and payroll taxes for New Jersey, as well as significant revenue for municipalities in Bergen County through the PILOT program. Gov. Chris Christie has pledged that any state funds committed to the project will be in exchange for an economic interest in the project. The lender group is being advised by leading investment bank Moelis & Company, as well as Sills Cummis & Gross and Weil Gotshal & Manges LLP.