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News release

Parsippany, NJ

Xanadu Lender Group Retains Jones Lang LaSalle to Provide Asset Management Services

Move to Add Global Real Estate Firm to Preserve the Site’s Value Helps Facilitate Project Completion


EAST RUTHERFORD, N.J., Sept. 7, 2010 – In an effort to accelerate completion of the Meadowlands Xanadu entertainment and retail complex, the consortium of lenders that recently acquired control of the asset (“The Lender Group”), announced today that Jones Lang LaSalle has been retained as the exclusive asset and property management firm for the complex.
 
In this role, Jones Lang LaSalle will oversee all asset management services for the complex as the Lender Group continues negotiations with several new world-class entertainment and retail operators to expedite completion of the project.  Jones Lang LaSalle’s duties include strategy execution, property management, development advisory and institutional reporting.
 
With more than 1.6 billion square feet of property and corporate real estate under management worldwide, Jones Lang LaSalle has one of the industry’s largest asset and property management service platforms, including the largest third-party retail management business in the county. The firm also has a 40-year history of co-investment and third-party asset management through Spaulding & Slye Investments, with a strong reputation for providing above-market risk-adjusted returns in all real estate market cycles.
 
The Jones Lang LaSalle team leading Xanadu asset management includes Managing Directors Jere Lucey, Daniel St. Clair and Karen Raquet. Jones Lang LaSalle is joined by the local development team for the project, lead by Joseph Calascibetta, Peter Sjolund and Kevin Neuner.
 
“Our extensive experience managing large-scale, multi-faceted properties with significant retail components will ensure that this extraordinary mixed-use complex is maintained by our team to a standard that will continue to attract interest from future tenants, and be appealing to visitors to the new Meadowlands Stadium and Izod Arena,” stated Lucey of Jones Lang LaSalle. “Our immediate efforts will be concentrated on day-to-day property management functions at the facility in order to protect the value of this property and ensure a smooth ownership transition once a new operator is chosen to complete the project.”
 
The project is a five-story entertainment and retail complex under construction in the Meadowlands Sports Complex in East Rutherford, N.J. Once complete, the project will be the largest entertainment and retail complex in the nation, including an in-door ski slope, Ferris wheel, performance theaters and other entertainment venues.
 
“The New Jersey Sports and Exposition Authority is enthused and comforted by the appointment of Jones Lang LaSalle – a company with a world-class reputation – to manage this significant property,” stated Sports Authority Chairman Carl Goldberg. “We are confident that Jones Lang LaSalle’s oversight of the asset will ensure it remains in top condition for the new operator chosen to bring this project to its envisioned completion.”
 
The complex’s opening will generate thousands of jobs and tens of millions of dollars in sales and payroll taxes for New Jersey, as well as significant revenue for municipalities in Bergen County through the PILOT program.
 
Governor Christie has pledged that any state funds committed to the project will be in exchange for an economic interest in the project.
 
As part of the Lender Group’s negotiations with prospective new operators for the complex, the new operator will be required to accelerate completion of the project.
 
Months ago, the complex’s previous ownership group and the Lender Group entered into a forbearance agreement to transfer control of the project to the Lender Group if marked progress on the development was not made.
 
The Lender Group is being advised by leading investment bank Moelis & Company, as well as Sills Cummis & Gross and Weil Gotshal & Manges, LLP.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.