GUILDERLAND — After being appraised for $470 million just a few short years ago, Crossgates Mall now has a valuation of $167 million. 
In July 2020, amid the early months of the pandemic, Crossgates’ appraised value was lowered from $470 million to $281 million. This March, that number was lowered once again, this time to $167 million.

The devaluation news was included as part of a report in the Commercial Real Estate Direct newsletter about the mall’s loan debt being sold at auction for a near 30-percent discount. 

Real-estate data firm Trepp reported on Aug. 18 that Crossgates’ once-$242 million in loans were sold for nearly $174 million, which, after subtracting $29.6 million in liquidation expenses, left $144 million in net proceeds — an approximately $98 million loss for bondholders. 

“The loss comes a little out of the blue,” Trepp wrote. “The loan was originally slated to mature in May 2022, but a modification pushed the maturity to this month. The loan was current following the modification and ahead of the resolution.”

“Newmark appraised the property last March at a value of $167 million,” Commercial Real Estate Direct reported on Aug. 25. “Other appraisals and brokers’ opinions of value had pegged the property’s value between $146.7 million and $157.2 million, according to servicer notes compiled by Trepp Inc.”

An appraisal is performed to determine the market value of a property at a certain date, under a certain set of conditions. It is an opinion. Loan lenders often use appraisals to determine the value of a property.

 Commercial Real Estate Direct said the loan had an original balance of $300 million, which “allowed Pyramid to refinance what then was a $181.1 million mortgage and take $110.3 million of cash out of the property. ”

Pyramid Management Group, in response to a request from The Enterprise, said in a statement, “We do not have any comment at this time.”