American Dream’s Owners Seek $183M Tax Refund

According to The Real Deal, Triple Five Group, led by CEO Don Ghermezian, claims that East Rutherford’s $3B assessment of the mall’s land significantly overstates its value.

Allegedly…

The developer is seeking to lower the valuation by half, arguing that the property was assessed far beyond comparable developments in New Jersey.

East Rutherford Mayor Jeffrey Lahullier has rejected the claims, stating that PILOT agreements—which replace traditional property taxes—do not permit refunds. 

“American Dream, naturally, would want that assessment to be as low as possible so they pay out the least amount,” Lahullier said.

Financial Recovery

While Triple Five fights for a tax refund, the mall’s financial performance has improved. Sales have increased for three consecutive quarters, and the property was 87% leased as of July 2024, according to JLL executive vice president Charles Cristella.

However, financial pressures remain significant. Bondholders have yet to recoup investments in $287 million of municipal bonds, though a temporary reprieve was granted in late summer. 

Additionally, Triple Five faces lawsuits from lenders, disputes over injuries on the property, and a unionization effort among workers.

Unprecedented Development

The American Dream mall, valued at $5B, remains a unique property in New Jersey and beyond. 

Real estate appraiser Robert Clifford noted that it’s difficult to compare the mall to other properties due to its size and scope, which include retail, entertainment, and leisure components such as an indoor ski slope and amusement park.

Why It Matters

Triple Five Group’s battle for a $183M tax refund underscores the ongoing challenges faced by the American Dream mall. 

While recent gains in leasing and sales signal recovery, disputes with East Rutherford, bondholders, and other stakeholders highlight the complex financial and operational hurdles the megamall must overcome to stabilize its future.