Destiny USA may be on a path to defaulting on its mortgage, according to a report published Tuesday morning in The Wall Street Journal.
The newspaper reported that the Syracuse shopping center’s mortgage was recently taken over by a special servicer that deals with defaults and loan negotiations and expects the mall’s owner, Pyramid Management Group, to default on the mortgage in June when it is due.
Pyramid has two mortgages totaling $430 million, the newspaper reported.
According to the Kroll Bond Rating Agency, one loan has a balance of $300 million that covers the initial parcel of Destiny, formally known as Carousel Center. The second loan has a balance of $130 million and is secured by a mortgage on the expansion part that opened in 2012 when the mall was renamed Destiny USA.
“We have been engaged in negotiations with the debt administrator to extend the loan,” Pyramid Management Group told Spectrum News in a statement Tuesday. “In order to further the loan extension process, Pyramid and the debt administrator initiated the common next step for the loan to be transferred into special servicing. Destiny USA is the dominant shopping, dining and entertainment destination in the region, and we are moving forward to solidify and build on its standing as Central New York’s premier international travel and tourism destination. The property is an important employment driver in the Syracuse area and an economic catalyst for the region. We look forward to continuing that success over the coming years and remain committed to ensuring the health, vibrancy and longevity of the center for decades to come.”