Crossgates loans to be auctioned off after default

Syracuse-based Pyramid Management Group, which owns Crossgates, could not refinance the loans before they fell into default, Bloomberg reported.

While the sale of the debt could result in a new owner taking over the mall, it is unlikely customers would notice much of a difference — at least in the short term.

It is unclear if Pyramid will bid on the loans. Bloomberg reported that the buyer of the debt would take ownership of the property. Pyramid Management did not respond to a request for comment.

Neither did Newmark, the commercial real estate management firm that will conduct the sale. The mall has 1.7 million square feet of space.

Issues with Pyramid’s mortgages on malls it owns across upstate and elsewhere have been occurring for several years now after the pandemic forced many of its tenants into bankruptcy and forced the mall to renegotiate leases, usually at much lower rents.

Ratings agencies have been downgrading the credit of debt securities backed by indoor shopping malls for years now on falling occupancy rates and rents. Wall Street investors have also “shorted” bonds backed by shopping mall debt, putting even more pressure on malls to do better financially.