Xanadu Deal a Name-Changer

EAST RUTHERFORD, NJ-When the 100-acre mega-project now known as Xanadu finally opens its doors to shoppers, it probably won’t go by that name. A spokesman for Triple Five, the Edmonton, Alberta-based conglomerate that has signed a letter of intent to take over the project, tells GlobeSt.com a new moniker will be part of an overall effort to revitalize and complete the much-delayed retail and entertainment complex in the Meadowlands. Triple Five will release its specific plans for the project early next year.

Triple Five's plans include "changing the name, interior and exterior design,” the spokesman says. “We also bring a new, fresh perspective to the project. Once complete, this will be one of the most successful entertainment and retail destinations in the world.”

Triple Five knows from successful retail destinations, as owners of Mall of America in the Minneapolis suburb of Bloomington, MN and West Edmonton Mall in Canada. Ranked third and first, respectively, among the largest North American malls—King of Prussia Mall in the Philadelphia suburbs ranks second—the two complexes cover a total of more than 10 million square feet and attract a total of more than 60 million visitors annually, 50% of whom travel more than 150 miles to visit these destinations, according to Triple Five.

In a statement issued this past Thursday announcing the tentative agreement, New Jersey Gov. Chris Christie expresses confidence that “the developers who created the most visited mall in the world, due to their vision and innovation, will transform the Meadowlands into New Jersey’s very own Mall of America.” Conceived on a Mall of America-like scale, the sprawling $2-billion project on 100 acres of state-owned land has run into delays and cost overruns for much of its nearly eight-year history, and more recently encountered the headwinds of the economic downturn.

In 2007, original developer the Mills Corp. turned it over to Colony Capital, which in turn ceded control to a consortium of lenders this past August after funding issues stalled the project’s completion. The Wall Street Journal reported that the lenders, which include Credit Suisse, Capmark Financial and an affiliate of Fortress Investment Group, hold about $500 million of debt on the project. In a statement, a spokesman for the lenders group applauds the selection of Triple Five.

The WSJ reported that the agreement calls for the lenders to be paid over time as the project is completed, rather than up front. Triple Five’s spokesman declines to disclose terms of the agreement, but says it’s structured “to ensure the ultimate success of this project. We have worked closely with all parties involved and we are confident that our plan will lead to a world-class entertainment and retail destination.”

As part of re-naming the project formerly known as Xanadu, Triple Five plans to engage the public in the process. “We are confident that once the project is open, the citizens of New Jersey will take pride in it,” the company’s spokesman says. “The naming process is part of sharing ownership with the public. As we move forward it is very important to us to engage the community in a positive way.”