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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
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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.