Xanadu Grabs First Tenants

EAST RUTHERFORD, NJ-Colony Capital has unveiled the list of initial tenant signings for the retail portion of Meadowlands Xanadu, the $2-billion, 4.8-million-sf retail and entertainment complex currently under construction around the Continental Airlines Arena here. The tenants, amounting to nearly half of the one-million-sf retail portion’s space, are a combination of previously announced tenants that had yet to be signed, and several new entries.

Largest of the incoming tenants are Cabela’s, which will open a 200,000-sf outdoor store, and Muvico, which will occupy nearly 200,000 sf with a 23-screen movie complex. Also in the entertainment category are AEG Live, with a 71,000-sf, 3,000-seat theater; Wannado City (60,000 sf); a Lucky Strike bowling complex (29,000 sf); and a MagiQuest game center (23,000 sf).

Others just signed include Forever 21, which will operate a 55,000-sf junior department store; Legoland Discovery Center (48,000 sf); and a Zeytinia Gourmet Market (24,000 sf). In the apparel category, the list includes Children’s Place (27,000 sf), Against All Odds (also 27,000 sf) and H&M (23,500 sf).

The Los Angeles-based Colony Capital bought the project from the troubled Mills Corp. a year ago, and the latter has since been acquired by Simon Property Group. In late 2006, Colony Capital completed a recapitalization of the project, a deal that included Dune Real Estate, Credit Suisse and KanAm. The site is owned by the New Jersey Sports & Exposition Authority, the state agency that owns and operates the surrounding Meadowlands Sports Complex.

Mills had originally started site work for Meadowlands Xanadu in 2005. Designed by the Rockwell Group, it will include a number of other recreational and entertainment features, including this country’s first indoor snow skiing. Also part of the long-term plan are four office buildings totaling more than 1.6 million sf of class A space, which would be developed by the Edison-based Mack-Cali Realty Corp., and a 500-key hotel.