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JERSEY MEGAMALL UNVEILS TENANTS

BY BRANNON BOSWELL

The Mills Corp. has reached two milestones in the development of its New Jersey Meadowlands Xanadu retail-entertainment project.

The Arlington, Va.-based firm and its partners closed on a land-lease pact on the mammoth New Jersey Meadowlands retail-entertainment project, agreeing to pay $160 million for the first 15 years.

Further, Mills reported last month that the 4.7 million-square-foot mixed-use project is already 48 percent leased, with such tenants as gourmet grocer Balducci’s, Borders Books, Cabela’s, Circuit City and Virgin Megastore on the roster.

Among the amusement tenants to sign on are the go-cart racing attraction F1, the House of Blues nightclub, upscale bowling alley Lucky Strike, skydiving simulator SkyVenture, indoor skiing concept Snowdome and children’s concept Wannado City. Restaurants Dos Caminos, Ruby Foo’s, Strip House and The Summer Shack will be part of the lineup too.

In addition, Mills has signed branding deals for three of the project’s five lifestyle districts. Entertainment Weekly magazine will produce interactive content for the center’s entertainment district, and Elle magazine will do the same for the fashion district; a Viking Culinary Arts Center cooking school will anchor the food and home district. The partners did not disclose the financial terms of these sponsorships. Deals are still on the table for sponsors of the sports and children’s education districts.

Tenants for the office and hotel components have not been named yet.

Construction is set to begin in December. JPMorgan analyst Michael Mueller estimates that the total cost of development will reach about $850 million. Mills’ stake in the project will come to about one-third of that, he adds. Private REIT Mack-Cali Realty Corp. and German investment firm KanAm are Mills’ partners in the development.