Most Obvious Short Trade Of the Decade: “American Dream @ The Meadowlands” (Née, Xanadu)

28 Apr

This is the ugliest retail space built in the United States since at least the 1960’s.  It is also one of the biggest.  A new deal between the state of New Jersey and a Canadian developer aims to make it even bigger (and less ugly, although that remains to be seen).  In addition to the indoor “ski-slope” (apparently the developers don’t know there are several places to ski outdoors within an hour of Manhattan), the developers want to build an indoor water park and other features not seen outside of Japan since the real estate bubble burst.  Apparently the developers don’t think that traffic will an issue, either.  After all, its not like the NJ Turnpike and Rt 3 (on which I’ve personally ghost-rode my whip) are already packed in bumper-to-bumper traffic at least 6 hours each day or anything…

Remember, this new effort comes after at least two previous ventures have gone bankrupt and/or been foreclosed-upon trying to get the doomed-from-the-start project up and running.   Someone please find out where the debt on this poorly-conceived, horrendously-executed mountain of boom-time excess is trading, or even better, the CDS.  Put me down for lots of protection on those bonds…

Who puts “American Dream” in real estate project’s name?  Seriously.  Especially one with such a star-crossed history as this one.  It’s like they’re actively TRYING to make the project fail!

Wait.  Maybe the developer already IS long CDS…


2 Responses to “Most Obvious Short Trade Of the Decade: “American Dream @ The Meadowlands” (Née, Xanadu)”

  1. Kid Dynamite April 28, 2011 at 11:24 pm #

    how does Dusty Rhodes not have “The American Dream” copyrighted?!?!?

  2. DJ April 29, 2011 at 8:03 pm #

    I agree! The concept is flawed and outdated. The Canadian developer Triple Five is not exactly the go-to retail developer in Canada. Both West Edmond Mall and Mall of America, which Triple Five owns, are old malls that seem to have worked in a cold climate. My rule of thumb in retail real estate, stay away from malls with an ice rink, let alone a ski slope!

    How much will the tax payers be paying? There must be an angel to this. Smart developers rarely put up too much of their own money at risk. Colony Capital has a piece in this (they bought the debt and foreclosed??), they are usually pretty smart when comes to distressed real estate.

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