The American Dream megamall reopens after closing seven months ago amid Covid-19

Описание: The American Dream mall is reopening on October 1, after closing down for the past seven months due to the coronavirus pandemic. There will be 25 percent capacity limit and strict social distancing measures to prevent the spread of the virus. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

It was March 16 — just three days ahead of the grand opening of dozens of retail stores at the American Dream megamall in New Jersey — when the 3-million-square-foot complex shut down due to the coronavirus pandemic.

Ongoing construction was halted. Attractions, like a Nickelodeon Theme Park that opened in the fall and an indoor ski slope that opened during the winter, were closed. And a VIP event to celebrate the debut of the DreamWorks Animation Water Park was called off. Triple Five Group, the property’s owner, hoped it would be a short delay — just another in a series of setbacks the project has seen over its nearly two-decade-long history.

Thursday morning, Triple Five tries again.

Almost seven months later, American Dream is finally swinging open its doors to the public. Visitors will be able to purchase tickets to attractions including an NHL regulation-size ice rink, an indoor ski slope and an Angry Birds-branded mini golf course. Retailers including Zara, Lush, Primark, Aritzia and American Eagle, will also open there for the first time.

The Covid-19 pandemic has upended the retail industry: It has pushed dozens of companies into bankruptcy court and resulted in thousands of layoffs. It’Sugar, which boasts a towering candy store next to the water park at American Dream, filed for bankruptcy protection last month. A location planned in the megamall’s luxury wing for Barneys New York, which liquidated after filing for bankruptcy last year, must still be filled.

These tenants’ troubles affect Triple Five, which also operates the Mall of American in Minnesota.

The property owner has struggled to pay its own bills during the pandemic. Triple Five remains more than 90 days delinquent on its $1.4 billion mortgage for Mall of America, according to Trepp, a New York-based research firm that tracks the commercial mortgage-backed securities market. The value of the mall was recently reduced to $1.94 billion from $2.3 billion, Trepp said. And Triple Five actually used Mall of America, the largest U.S. mall, as collateral for an American Dream loan.

American Dream co-CEO Don Ghermezian told CNBC in an interview in early April, shortly after the megamall was shut: “The difficulty we are going though now ... if tenants don’t want to pay rent, my response is: ‘I have got to pay a mortgage. I borrowed money. I have got to pay back my lenders.’”

A spokeswoman for Triple Five told CNBC this week: “We are making positive progress with our lenders, and reopening American Dream is another step forward.”

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