The closure of At Home at Destiny USA is yet another blow to the struggling mall in Syracuse. Moody’s Investor Service anticipates a small group of tenants to open at the mall in 2024, but they will not be able to make up for the lost leased square footage from At Home’s closure, resulting in nearly $1 million a year in lost rent for Destiny USA.
This unfortunate news comes as Destiny faces a looming deadline to extend or pay in full over $450 million in mortgage loans. The mall, drowning in debt, has managed to secure extensions on the loans but faces challenges in meeting financial targets. Furthermore, the loss of large anchor tenants like At Home poses a significant threat to the mall’s market position, as these stores are key drivers of foot traffic and essential to Destiny’s success.
The ongoing struggle to attract new anchor tenants, coupled with online shopping trends, poses a serious threat to Destiny. With a debt valuation five times more than the mall’s actual worth, refinancing or extending loans may not be feasible options. The fate of Destiny USA hangs in the balance as its owners grapple with financial challenges and the need to revitalize the once thriving mall in the face of changing consumer preferences.
