Colony Capital Gets Mack-Cali's Xanadu Share

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E. RUTHERFORD, NJ-Colony Capital Acquisitions has completed the purchase of the retail/entertainment portion of the Xanadu mixed-use complex. Developer Mack-Cali will get $25 million for that component and is still optioned to develop the office and hotel components but at a reduced rate.

"We are pleased to have the complex negotiations of the last few months behind us," says Richard Saltzman, president of Colony Capital. "The financing, major tenants and long-term vision are now in place."

Colony will be the managing partner of the venue, replacing troubled Mills Corp. and now holding Mack-Cali's retail/entertainment interest. Dune Real Estate Funds and KanAm are also investing in the project.

Mack-Cali has received $22.5 million at closing and will receive the remaining $2.5 million when it exercises its options for the office and hotel components. Its interest in the office and hotel component has gone from 80% to 75%.

Xanadu now has six anchor tenants, with a combined half million sf of retail accounted for. The three previous announced retailers--outdoors superstore Cabela's, upscale movie theater Muvico and children's retailer Children's Place--will be joined by a 2,250-seat concert hall operated by AEG Live, martini bar/bowling alley Strike MX, and women's apparel retailer Forever 21.Other planned projects include the 780-foot Snow Dome manmade ski slope, the 60,000-sf Wannado City children's career fair, a Culinary Arts Center, the skydiving simulation Sky Venture and North America's largest Ferris wheel. Bergen County Community College has also recently signed for a 70,000-sf satellite campus.

Construction agreements are in place with Joseph Jingoli and Sons, Turner Construction Co. and Whiting-turner Contracting Co. The target completion date is late 2008. A new train station serving the Meadowlands is slated for a spring 2009 completion.