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Return to Lender: Week of August 7, 2025
- The owner of Syracuse’s Destiny USA has lost its third mall in a year to foreclosure by lenders, according to Syracuse.com. A Warren County judge on July 14 approved a bank’s foreclosure on Pyramid Management Group’s Aviation Mall in Queensbury, NY, north of Albany, and ordered the shopping center auctioned off within 90 days or “as soon as reasonably practicable.” The foreclosure was implemented after the company failed to pay off a $26-million mortgage by its maturity date. Morningstar Credit noted that the property’s latest appraised value had fallen to just $7.2 million.
- Ruskin Investors, owner of the former Price Chopper store at Westgate Plaza in Albany, NY, relinquished ownership of the property to lender Ready Capital Corp. via deed in lieu of foreclosure. The Albany Business Journal reported that Schenectady-based Price Chopper/Market 32 had been a longtime tenant at Westgate Plaza off Central Avenue.The 83,000-square-foot building has been empty since the Price Chopper was closed last year and the chain moved into a newly renovated Market 32 store at the former ShopRite less than a mile east.
- The Sacramento Business Journal reported that foreclosure proceedings have been initiated against the owner of Old Sugar Mill in Clarksburg, one of Yolo County’s most popular event venues, due to missed loan payments. The filing, submitted on behalf of lender PMF CA REIT LLC, states that Old Sugar Mill owner Koy Builders has failed to pay monthly installments beginning June 1. As of the July 24 filing, Koy Builders owed $9,248,156.
- The $16.3-million loan on FogCatcher Inn Pacifica (4.8% of COMM 2015-CR24 | CMBX.9) has transferred to special servicing following its June 2025 maturity, according to Morningstar Credit. The limited-service beach hotel in Cambria, CA has reported weak revenue in recent years, pushing the DSCR in 2023 and 2024 below breakeven.
- A loan tied to a Philadelphia student housing property Pennbrook Apartments ($15.7 million | 16.0% of WFCM 2015-C30 | CMBX.9), was transferred to special servicing ahead of its July 2025 maturity, Morningstar Credit reported. The 218-bed property caters to students at nearby St. Joseph’s University. Performance has been weak for the last two years after the master lease with Saint Joseph’s University was not renewed, with occupancy reported at 70% in December 2024 (up from 30% the year prior) and a 2024 DSCR of just 0.32x.
- ◦Sale/Acquisition
- ◦Financing
