Mills Corp. and Mack-Cali sign deal to create 4.76m s/f Meadowlands sport and leisure arena

Real Estate Weekly, Dec 17, 2003

The Mills Corporation/Mack-Cali Realty Corporation project will transform the Meadowlands into the country's foremost destination for sports, entertainment, recreation and office facilities in East Rutherford, NJ.

A joint venture between affiliates of The Mills Corporation and Mack-Cali Realty Corporation today signed an agreement with the New Jersey Sports and Exposition Authority for the redevelopment of the Continental Airlines Arena site and the construction of Meadowlands Xanadu, the 4.76 million-square-foot family entertainment, office and hotel complex to be built at the Meadowlands Sports Complex.

The family entertainment component of Meadowlands Xanadu will open about two years after the groundbreaking. Meadowlands Xanadu will feature the nation's first indoor Alpine ski resort and an indoor mini-Formula One style racing venue. Other planned uses include a minor-league baseball stadium, an extreme sports park, a grand movie palace and a small-format live entertainment venue.

Mills Chairman and Chief Executive Officer Laurence C. Siegel said, "Meadowlands Xanadu will set a new standard for bringing lifestyle, recreation, sports and family entertainment offerings together in one location."

Mack-Cali Realty Corporation will be the lead developer for the 2.2 million-square-foot office and hotel component of the project. Mitchell E. Hersh, Chief Executive Officer of Mack-Cali, said, "Mack-Cali has a long history of developing premier office properties. We're confident that the high-quality office space and state-of-the-art hotel and conference center that we will build at Xanadu will attract top-tier businesses to the Meadowlands, benefiting both the complex and the Northern New Jersey region."

The office and hotel components of the project will consist of four 14-story, 440,000 square-foot class A office buildings and a 520-room hotel with conference facilities.

Kan Am, a Munich-based investment advisory company, will be an investment partner of The Mills Corporation in the project.

The Meadowlands Xanadu project is expected to generate 20,000 permanent jobs in New Jersey--translating into $1.24 billion in personal income annually--and 19,000 construction and related jobs--equal to $1.17 billion in annual personal income. The project is estimated to produce $133 million annually in state and local tax revenue.