By Larry Rulison | Times Union, Albany
Guilderland, N.Y. — The owners of Crossgates Mall were able to extend the mortgage loan on the mall for five more years.
After several years of financial difficulties in the wake of the Covid-19 pandemic, Crossgates defaulted earlier this year on the $300 million mortgage it took out in 2012 on the property.
At the time, Crossgates was valued at $470 million for local property tax purposes. Today, the mall’s owners have told town officials that the property is worth more like $100 million as Crossgates and other malls across the country have had to adapt in the wake of the pandemic, which not only forced the closure of the mall in early 2020, but also led to the collapse of in-person shopping in favor of online ordering.
The Crossgates loan, which was rolled into commercial real estate bonds that traded on Wall Street, was sold earlier this year at a significant discount to the original amount.
But the mortgage loan remained in place. The new owners, a joint venture between Morgan Stanley and a small Connecticut investment firm, negotiated new terms for the loan with Pyramid, which owns malls throughout the Northeast.
The exact terms of the modification were not made public.
“Successfully extending the loan demonstrates the strength and resiliency of Pyramid and health and vibrancy of our Crossgates property,” Stephen Congel, CEO of Pyramid said in a statement. “We look forward to continue reinvesting in the ongoing redevelopment of Crossgates and furthering its reputation as a hot spot for shopping, dining, and entertainment.”
Crossgates, which has 1.7 million-square-feet of space, generates $400 million in annual sales for its tenants. About 10 million shoppers go there each year.
Crossgates has tried to become an entertainment destination in addition to a shopping center. New tenants include clothing retailer Primark, and outdoor gear emporium REI is set to open soon.
Pyramid is also the owner of Destiny USA in Syracuse.
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