One of Nation’s Biggest Malls Could Face Foreclosure in New York

One of the nation's largest malls could be facing foreclosure in Central New York if millions in loans aren't paid.

Destiny USA owes hundreds of millions of dollars. The first loan of $300 million was for Carousel Mall. The second mortgage of $130 million paid for the expansion in Syracuse, New York.

KBRA, a credit rating agency, said the loans originally had five-year terms with a maturity date in 2019. A forbearance agreement, which postpones or lowers loan payments was in effect through June 2024.

READ MORE: Another Business Moves Away From Destiny USA

Enforcement Action

Since it's now August 2024 Destiny USA needs to pay nearly $40 million, but it looks like that won't happen. "The borrower confirmed that they are not in a position to make the payment," said KBRA. "Therefore, the special servicer has terminated the forbearance agreement and is planning enforcement action."

CEO of Pyramid Management Group Stephen Congel released a statement on the latest loan news.

“Destiny USA has been a landmark in our community for more than 30 years. We are currently engaged with the special servicer regarding modification of the loan and will continue to provide an exceptional experience for our 17 million annual guests and employees.”

READ MORE: Another Store Closes its Doors! This Time in Destiny USA

A number of stores have moved out Destiny USA in the past year including World of Beers and At Home, one of the anchor stores in the mall.

As more and more people shop online, mall could soon be a thing of the past, not just in New York but across the country.

If Destiny USA is placed in foreclosure it would have only a liquidation value of $65.3 million, a lot less than the $430 million it owes.

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