Inside the Ghermezians’ fight to keep $4B American Dream alive in Miami
It takes serious imagination to envision dropping a 16-story indoor ski slope near swampland in South Florida. That’s why the Ghermezian family, owners of the three largest shopping centers in North America, may be the only developers willing and able to pull it off…
…In July, county commissioners gave Triple Five a lifeline, agreeing to settle an April lawsuit the county filed seeking to cancel Miami-Dade’s development agreement with the Ghermezians’ firm because they had missed deadlines to submit a site plan and obtain the first round of building permits. Triple Five agreed to pay a $5 million penalty in four installments beginning next year to extend the deadlines and give the Ghermezians until 2045 to complete American Dream Miami.
Given the Ghermezians’ overall investment in the project, it’s a small price to pay to keep it on life support.
“In the context of a large development, the $5 million penalty may not be a huge thing,” said Shlomo Chopp with Case Equity Partners. “That wouldn’t be the case if [the Ghermezians] were flailing, didn’t have a plan and everything was falling around them.” …
…Nevertheless, the Ghermezian theme park mall model appears to be working. Mall of America in Minnesota, the Ghermezians’ largest asset that had been mired in difficulties, is “killing it,” said Chopp of Case Equity.
Yet, American Dream in New Jersey is still dealing with financial issues, such as a recent drop in value by $800 million, but has experienced success attracting patrons.
“The Ghermezians are strong guys. They know what they’re doing,” he added. “The only ones that are really interested in developing this type of concept would be them and Disney. And Disney already has Orlando.”