Syracuse, N.Y. -- Destiny USA, one of the largest malls in the nation, is struggling to pay its mortgage, according to a published report.
The Wall Street Journal said Tuesday the Syracuse shopping mall’s mortgage was recently taken over by a special servicer, a company that deals with defaults or renegotiations of loan terms. The servicer said it expects the mall’s owner, Pyramid Management Group, to default on the mortgage when it comes due in June, the newspaper said.
Pyramid has two mortgages on the 2.4 million-square-foot mall totaling $430 million, according to the report.
A Pyramid representative told the newspaper it is now in discussions for an extension on its mortgage. The representative said the mall had experienced tenant closures "just as other properties across the country have on the brick and mortar front,” according to the report.
Destiny USA’s financial struggles were reported as part of a larger story about the challenges that shopping malls are facing as major retail chains close stores.
Commercial Real Estate Direct reported March 28 that “weakening collateral cash flows” and the pending maturity date of the mall’s mortgage prompted the transfer of the mortgage to special servicer Wells Fargo Bank.
Pyramid said it played a role in getting the loan transferred because it did not expect to retire the loan in June, according to the March report. The same publication reported in 2018 that the mall had seen net cash flow decline by nearly 10 percent since 2014.
Malls all over the Country are hurting. I'm surprised Sangertown has survived. I was in there a couple years ago 3-4 days before Xmas & one could throw a stone from one end to the other & not hit anyone. And all the sales were in full swing.
My former father in-law used to walk at Sangertown 3 or 4 mornings a week, and was part of a group of older folks that gathered to walk and then stayed to enjoy coffee and conversation afterward. He stayed fit until Diabetes took him down. He lost both of his legs, ended up on dialysis, and eventually succumbed to the disease. It was very sad for me to watch such an active person decline. We had spent a lot of time together, camping, hiking, boating, and fishing.
It would be very sad to see Destiny Mall meet the same fate that many of the smaller malls have met. It grew to become a true destination due to the sheer magnitude and size, as well as the wide variety of shops, and what was a spectacular food court with the carousel. I haven't been there in over 20 yrs. Is it still pretty well occupied and popular with shoppers?
Is the Great Northern Mall still doing well? My ex, myself, and my in-laws used to make occasional Sunday trips there for the gals to shop. We would finish the day with dinner at the turkey farm restaurant. I don't think that is in business anymore, but I loved that place.
Last Edit: Apr 16, 2019 10:58:30 GMT -5 by Clipper
Was Great Northern in Cicero? If that's the one it's now Driver's Village a huge conglomerate of car dealers. I actually bought a used Tundra up there a few years ago & got a hell of a deal. I got fed up with the dealers around here with their take it or leave it attitude so I ended going to DV one day, saw the truck, took a test drive, made an offer & bought it on the spot with no bs from the salesman. Best truck i ever owne owned until one day when i hit black ice, lost it & wrapped it around a tree. Both airbags went off, the truck looked like it was hit by a freight train & I walked away without a scratch. And know I'm off subject..........
Post by Pizzaballa on Apr 16, 2019 19:51:25 GMT -5
New tonight on WKTV made it sound like this is actually going to happen.
Stay tuned on Wednesday since that is Don Shipman's last day. He and his husband are moving to Boston, Mass and he took a job offer doing the same thing in. Apparently his husband got a great job offer he couldn't refuse so he took it.
Last Edit: Apr 16, 2019 19:54:00 GMT -5 by Pizzaballa