New York Mall Debt Hits Auction Block as Property Stress Mounts

Mortgages totaling $243.7 million on the Crossgates Mall in Albany, New York, are going up for auction after the debt came due and the owner was unable to secure new financing.

The debt, which is in three commercial mortgage-backed securities, matured in May after a one-year extension and has gone into default, according to a presentation from Newmark, the company managing the sale. The loans have a post-default interest rate of 9.4%, up from 5.4% when they originated.

The buyer of the debt would be positioned to take ownership of the property, likely for a lower cost than the ...