A massive chunk of Destiny USA’s debt is now up for sale, according to CNY Central, adding another chapter to the financial struggles facing New York state’s largest mall. The mall’s primary commercial mortgage-backed loan has grown to more than $480 million and is being marketed to potential buyers.
That loan represents most of the mall’s more than $700 million total debt load. The remainder is tied to roughly $250 million in bonds issued through a payment-in-lieu-of-taxes agreement with the Syracuse Industrial Development Agency.
Commercial mortgage-backed securities package large real estate loans and sell them to investors through bond offerings. Officials with the loan servicer, brokerage firm, and Destiny USA owner Pyramid Management Group had not responded to requests for comment as of the report.
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