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New York’s Biggest Mall Avoids Default With Lender Reprieve

Owner gets five-year extension on $430 million in CMBS debt
Destiny USA’s value sank 80%, putting it deeply underwater

Shoppers walk through the Destiny USA mall in Syracuse, New York, on July 10, 2020. — Shoppers walk through the Destiny USA mall in Syracuse, New York, on July 10, 2020.Photographer: Maranie Staab/Bloomberg

By

John Gittelsohn,

Erin Hudson, and

June 23, 2022, 7:15 PM UTCUpdated onJune 23, 2022, 9:19 PM UTC

New York’s biggest mall has reached a deal with lenders to avoid a default after the pandemic and years of retail turmoil left it deeply underwater on its mortgages.

Destiny USA, a 2.4 million-square-foot (223,000-square-meter) shopping center in Syracuse, owed $430 million on two mortgage-backed securities that missed a June 6 repayment deadline. The mall’s owner, Pyramid Management Group, said Thursday that it got a five-year extension for its loans, with flexibility to keep investing in the property.