Pyramid Management Group has secured a $204.5 million, five-year loan for Walden Galleria in Buffalo, New York.
The new financing retires a commercial mortgage-backed securities loan carrying a balance of $196.43 million — a loan that had been in special servicing and active foreclosure proceedings for nearly a year. Two subordinate loans totaling $80 million also were backed by the property, according to CMBS data.
The refinancing closes a turbulent chapter for the 35-year-old mall. Pyramid told lenders in early 2025 that it could not pay off the maturing CMBS loan by its May 1 deadline, according to CMBS loan servicer records.
The special servicer rejected Pyramid's request for a forbearance extension, triggering a foreclosure action. A receiver was appointed in June, though Pyramid continued managing the property under a court-ordered stipulation.
The new loan effectively resolves that dispute and returns Walden Galleria to stable financial footing.
Pyramid CEO Stephen Congel pointed to the mall's operating performance as the foundation for securing new financing, adding that new retail, dining and entertainment announcements are forthcoming in the months ahead.
Impact investment firm Second Horizon Capital and global asset manager Cross Ocean Partners partnered with Pyramid as lenders on the transaction.
"This transaction reflects our continued focus on investing in retail centers with meaningful long-term potential," Howard Levine, managing partner and co-founder of Second Horizon, said in a statement.
Walden Galleria spans more than 200 retail brands and anchors its tenant mix with Macy's, JCPenney, Dick's Sporting Goods, Regal Cinemas, Primark and Best Buy.
The Walden Galleria closing fits into a broader refinancing push Pyramid has executed over the past year. The Syracuse, New York-based mall developer has refinanced more than 4.6 million square feet of properties and placed over $500 million in new loans during that span.