Seritage Growth Properties completed a voluntary prepayment of $130 million against its $1.6 billion term loan facility with Berkshire Hathaway Life Insurance Company of Nebraska, leaving a $70 million principal balance. The payment was funded by the recent sale of the company’s Aventura, Florida property, which closed at $131 million after accounting for leasing‑cost credits.
The prepayment cuts Seritage’s interest expense by roughly $9.2 million per year and is part of a broader deleveraging program that began in December 2021. Since that time the company has repaid $1.53 billion of the loan, reducing annual interest costs by an estimated $108.6 million and strengthening its liquidity position as it continues to execute its shareholder‑approved Plan of Sale.
Management highlighted the strategic importance of the transaction. CEO Adam Metz said, “We continue to see good progress on our various asset sale processes… expect near‑term closings for all three assets under contract with no due diligence contingencies, which, if completed, would allow us to make a sizeable prepayment of our Term Loan Facility outstanding principal balance prior to year end.” The Aventura sale, priced at $131 million, was a key source of cash that enabled the prepayment and demonstrates the company’s ability to monetize its portfolio under the Plan of Sale.
Although Seritage reported a net loss of $13.6 million in Q3 2025, the aggressive debt reduction signals disciplined capital management. By lowering its debt load, the company reduces financial risk and preserves cash that can be returned to shareholders once all assets are sold and the company is dissolved.
Headwinds such as elevated interest rates and limited capital availability remain, but the successful sale and prepayment illustrate that Seritage can still execute asset dispositions and manage its debt profile. The company extended the maturity of its term loan to July 31, 2026, giving it additional flexibility to time future sales and payments.
Overall, the $130 million prepayment marks a tangible step forward in Seritage’s Plan of Sale, improving liquidity, cutting interest costs, and moving the company closer to its ultimate goal of asset liquidation and shareholder distribution.
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