Pyramid to Begin $40M Multifamily Project by Galleria at Crystal Run Mall Later This Year
Real Estate In-Depth | July 7, 2022
WALLKILL—After securing approvals from the Town of Wallkill earlier this year, construction will begin later this year on a new 224-unit multifamily housing development across from Pyramid Management Group’s Galleria at Crystal Run shopping mall here.
Syracuse, NY-based Pyramid Management Group announced the project timeline on July 6. Pyramid is working with Long-Island based Eliviat Group on five acres of land directly across from the Galleria at Crystal Run that will be the site of the new market rate residential complex called “The Galleria Residences.” The project is expected to cost $40 million to build and is scheduled to break ground later this year, with an expected completion date of June, 2024.
The development will feature a direct walkway connection to the Galleria at Crystal Run, feature four stories and underground parking as well as one acre of recreational space with a patio and pool for barbecues, relaxing and more. The amenity rich building also features a rooftop lounge and dog park, Pyramid officials stated.
The Galleria at Crystal Run is anchored by Target, Macy’s, Dick’s Sporting Goods and JC Penney, while offering more than 100 retail shops. The Galleria at Crystal Run offers six entertainment venues and 10 onsite eateries, such as AMC Theatres, Billy Beez, The Mystery Room, Urban Air Adventure Park, Ride & Thrill, Round 1 Bowling & Amusement, 110 Grill, Fuji Japanese Steakhouse, Peru Cuisine, and the new Allan’s Mediterranean Bar & Grill.
Pyramid Management also announced that earlier this month the first residents of its “Alexan Kingston” residential development in Kingston, MA took occupancy of their units. Trammell Crow Residential officially welcomed the first residents to the 282-unit market rate residential development immediately adjacent to the Pyramid-owned and operated Kingston Collection mixed-use complex.
Both the Kingston Collection and the Galleria at Crystal Run follow a similar diversification strategy successfully executed by Pyramid that also brought the addition of hospitality to its Destiny USA flagship property in Syracuse and its Crossgates retail property in Albany.
“The opening of a residential complex at our Kingston Collection and ongoing development at the Galleria at Crystal Run, is really just the beginning of a much broader, portfolio-wide diversification strategy to bring popular, exciting new uses, such as residential, into the mix with our existing assets. We are pleased to be moving forward with additional residential projects across our portfolio,” said Stephen J. Congel, CEO of Pyramid Management Group. “Staying ahead of the curve is the key to our success and resilience as a company.”
In late June, Pyramid Management Group announced it had worked out a five-year extension on loans with its lender on its 2.4-million-square-foot mixed-use Destiny USA property in Syracuse.
“Destiny USA emerged from the pandemic maintaining its position as the dominant retail and entertainment destination in the region,” said Pyramid CEO Congel. “The resilience and strength of the shopping center, along with Pyramid’s continued efforts to reimagine, redefine and enhance the guest experience, enabled us to successfully extend the loan.”
According to a Syracuse.com report, the mortgage loans were for $300 million and another for $130 million and were due to mature on June 6, 2022. Pyramid had notified its lenders it would not be able to pay off or refinance the debt by that date and the loans were sent to a special servicer, Wells Fargo, which began talks on a loan extension.
“Lenders had little choice but to extend the loans. The mall’s value has fallen, by one industry estimate, to just $140 million, which is far less than the $430 million balance on the mortgage loans and the approximately $285 million in other debt on the mall,” the Syracuse.com report stated. “So, foreclosing on the mall and selling it would have meant a big loss for lenders.”
Pyramid Management Group is one of the largest privately-held real estate developers in the Northeast. Pyramid’s portfolio consists of 14 shopping, dining, entertainment and hospitality destinations located throughout New York and Massachusetts.