Owner of Destiny USA, New York's Largest Shopping Center, Wins Loan Extension
By Akiko Matsuda
The owner of the Destiny USA shopping center received a
five-year extension for the loans backed by the shopping mall known
as New York's largest, averting a potential default by the
Since last spring, Pyramid Management Group has sought a
restructuring of its $430 million commercial mortgage-backed
securities for the Destiny USA property in Syracuse, N.Y., hiring
legal and financial advisers for the effort.
The two loans -- $130 million and $300 million -- were
transferred in April to special servicers because of imminent
payment default at the upcoming maturity date of June, according to
But the company said Thursday that it has "successfully worked
with its lender" to extend the loans' maturity by five years.
"Now more than ever, lenders and municipalities are realizing
the importance of the operator behind these properties," said
Pyramid Chief Executive Stephen J. Congel, who added that the
extension allows Pyramid to continue to reinvest in the shopping
In addition to the $430 million loans, Destiny USA is also
obligated on about $286 million in municipal bond debt that was
downgraded deeper into junk territory by Fitch Ratings in May.
Pyramid didn't immediately return a request for comment
Write to Akiko Matsuda at Akiko.Matsuda@wsj.com
(END) Dow Jones Newswires
June 23, 2022 19:29 ET (23:29 GMT)
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