Indoor malls across the US are facing default on loans as they struggle to recover from the clobbering they took during the pandemic—and some mall owners are opting not to refinance in order to unload these leveraged assets, which in most cases can't be traded for more than they were purchased.
The malls staring default in the face include the largest shopping center in the state of New York and several US properties owned by Paris-based Unibail-Rodamco-Westfield (URW), which recently announced it is selling its entire portfolio of 24 US malls.
Destiny USA in Syracuse, New York's largest mall is facing a deadline to repay more than half of its estimated $700M in debt. According to a syracuse.com report, Destiny owner Pyramid Management Group has until June 6 to pay off $430M in mortgage. The report said the megamall's value has shrunk to $140M.
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