NJ’s American Dream Mall Has Value Cut $850 Million by Judge (1)

A tax court judge cut the assessed value of New Jersey’s American Dream mega mall by $850 million on Thursday, the latest reduction that brings the property’s valuation down about 50% this year.

The reduction hands a win to the property’s owners who sought to lower payments tied to the valuation, but deals a blow to bondholders who own the roughly $800 million of debt backed by those payments, called payments in lieu of taxes, or PILOTs.

Gregg Schwartz, an American Dream spokesperson, didn’t immediately respond to a request for comment.

Judge Michael Gilmore determined that the 3.5 million ...