By Paul Rosta, Senior Editor<\/p>\n
Xanadu, \u00a0the $2 billion retail and entertainment complex taken over yesterday by a consortium of lenders, may soon be getting a new lease on life after years of delays and financial woes. The lenders are in talks with developers who could take over the project, reportedly including The Related Cos. and Triple Five Group, the Canadian developers of the Mall of America in Minneapolis.<\/p>\n
Nevertheless, there are plenty of hurdles ahead for Xanadu, which stands partly complete in the New Jersey Meadowlands complex near the Izod Center sports and entertainment venue and the new stadium for the National Football League\u2019s Giants and Jets. Years of problems, along with a widely criticized design, have given the property a reputation as a costly white elephant. \u00a0The project\u2019s creditors, which include Credit Suisse Group AG, Capmark Financial Group Inc. and Fortress Investment Group L.L.C., assumed control of the 4.8 million-square-foot project from Colony Capital L.L.C.<\/p>\n
Despite widespread skepticism about Xanadu\u2019s chances, it has its believers among senior executives in the local real estate market. \u201cThere are a lot of reasons to expect that a project like Xanadu could experience success,\u201d said Gil Medina, New Jersey executive managing director for Cushman & Wakefield Inc., which is unaffiliated with the project.<\/p>\n
Up to now, the project has suffered from timing, said Medina, who has watched the project take shape from his office window a few hundred yards away. The faltering retail market has caused potential tenants to cut back their commitments to leasing space or pull out entirely. And in 2008, the collapse of Lehman Brothers took a major source of financing out of the picture. Medina, a who served as New Jersey\u2019s secretary of commerce in former governor Christie Todd Whitman\u2019s administration, suggested \u00a0that the project has several aces in the hole. \u00a0Medina noted that although Xanadu\u2019s exterior has drawn criticism, \u201cWhen you go into the interior, it is absolutely fabulous.\u201d<\/p>\n
Tourism could be give the project a major boost as well, Medina said, since New Jersey ranks 10th<\/sup> in the country as a tourist destination. Xanadu\u2019s location in the New York City metropolitan region and in densely populated New Jersey is also in its favor. A completed rail link and road improvements have addressed infrastructure concerns. Moreover, he said, the administration of New Jersey Gov. Chris Christie is engaged and wants to see the project succeed. The new owners are seeking state assistance to help defray the cost of infrastructure improvements, and tax increment financing may be an option.<\/p>\n","protected":false},"excerpt":{"rendered":" By Paul Rosta, Senior Editor Xanadu, \u00a0the $2 billion retail and entertainment complex taken over yesterday by a consortium of lenders, may soon be getting a new lease on life after years of delays and financial woes. The lenders are in talks with developers who could take over the project, reportedly including The Related Cos.…<\/p>\n","protected":false},"author":445,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21742],"tags":[],"class_list":["post-1004022266","post","type-post","status-publish","format-standard","hentry","category-development","category-latest"],"acf":[],"yoast_head":"\n