A quartet of Pyramid Group malls in Upstate New York have gone into special servicing after the firm requested debt service relief because of the coronavirus pandemic.
Destiny USA in Syracuse, Walden Galleria Mall in Cheektowaga, Crossgates Mall in Albany and Poughkeepsie Galleria are now all in special servicing, according to Kroll. The company’s Palisades Center mall in West Nyack went into special servicing earlier this month.
Destiny USA has a pair of mortgage loans on it with an outstanding balance of $430 million, and Walden Galleria has a single mortgage loan on it, according to Kroll.
No additional details were provided for Crossgates Mall and the Poughkeepsie Galleria, the credit rating agency said. Pre-coronavirus, the Poughkeepsie Galleria’s income had already fallen to just 88 percent of debt service.
A $388.5 million loan on the Palisades Center was transferred to special servicing because of an imminent default, according to Trepp. A source at JPMorgan said the property could go into foreclosure by mid-summer if Pyramid does not find a buyer, Several developers, investors and hedge funds have already expressed interest in buying the mall at a steep discount, according to the Rockland County Business Journal.