CHEEKTOWAGA, N.Y. (WKBW) — The owner of Walden Galleria announced it has secured new financing to strengthen the future of the retail destination.
Almost a year ago, Pyramid Management missed a payment on its $220 million loan from Wells Fargo, sparking questions about its financial future. But the company announced Friday it secured a five-year loan, replacing the property's existing debt.
I spoke with the Cheektowaga Town Supervisor and a University at Buffalo business expert about what the Galleria's success means for our region.
"I think it's great news, I'm not shocked that it happened," Brian Nowak, Cheektowaga Town Supervisor, said. "You know it's the largest indoor shopping mall left in Western New York. Their occupancy rates are above 90% these days, so there's plenty of reasons for investors to support the work they're doing."
WATCH: Walden Galleria secures new financing to strengthen retail future
According to Pyramid, the new loan replaces the property's existing debt, which just last year put the mall at risk of foreclosure after the company missed a payment.
In a statement, Pyramid's CEO Stephen Congel said, "Walden Galleria continues to demonstrate exceptional strength and resilience, maintaining high occupancy and generating very strong sales revenue."
Nowak said stability at the Walden Galleria is a win for both Cheektowaga and the region, with the mall an important employer and tax anchor.
"A huge taxpayer in terms of property taxes, but also on the sales taxes," Nowak said. "So you may not live in the school district that benefits from the mall. You may not live in the Town of Cheektowaga, but they generate significant sales taxes that help all of Erie County."
"It speaks well of the Galleria that they were able to find financing," Charles Lindsey said, associate professor at the University at Buffalo's School of Management.
Lindsey said, unlike many malls nationwide, the Galleria has been able to navigate both changes in consumer spending and declining property values to better position itself for the future.
"The Galleria, because of how they're positioned in Western New York, they're the bully on the block," Lindsey said. "And because of the nice mix of retail, dining and entertainment options that they have, and because of their high occupancy rate, I think they've been able to weather the storm, I would say, better than the average mall. Significantly better than the average mall."
Pyramid Management Group also said there could be some options on the way for shoppers, "We anticipate announcing additional retail, dining and entertainment offerings that will further strengthen the property's position in the region."
