Seritage Growth Properties Reports Continued Asset Sales in 2025

Real estate investment trust sells off properties as part of strategic plan, faces liquidity challenges ahead of term loan maturity.

Mar. 31, 2026 at 8:44pm

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A high-end, photorealistic studio still-life photograph featuring simple, premium tangible objects arranged elegantly on a clean, monochromatic background, conceptually representing the abstract corporate strategy and finance challenges facing Seritage Growth Properties.Seritage Growth Properties' strategic asset sales and liquidity concerns reflect the ongoing challenges facing retail real estate investment trusts.Clearwater Today

Seritage Growth Properties, a national owner and developer of retail, residential and mixed-use properties, reported its financial and operating results for the fourth quarter and full year 2025. The company continued to execute its plan of sale, generating $230.7 million in total gross proceeds from property dispositions and repaying $190 million in debt. However, the company faces liquidity challenges ahead of a term loan facility maturity in July 2026.

Why it matters

Seritage's strategic shift to sell off assets and reduce debt reflects the challenges facing retail real estate investment trusts (REITs) as consumer shopping patterns and the retail landscape continue to evolve. The company's liquidity concerns raise questions about its ability to continue as a going concern without securing new financing or completing a strategic transaction.

The details

In 2025, Seritage sold seven properties, generating $230.7 million in gross proceeds. This included $10.5 million from the sale of a vacant asset, $28.5 million from an income-producing property, and $131 million from a non-stabilized premier asset. The company also received a $5.7 million distribution from an unconsolidated entity. As of March 2026, Seritage had one additional asset under contract to sell for $11 million. However, the company's anticipated sale proceeds and existing cash are not expected to be sufficient to fund its operating expenses and debt service, as its $50 million term loan facility matures in July 2026. This has led to substantial doubt about Seritage's ability to continue as a going concern.

  • In the fourth quarter of 2025, Seritage sold seven properties.
  • As of March 2026, Seritage had one additional asset under contract to sell.
  • Seritage's $50 million term loan facility matures in July 2026.

The players

Seritage Growth Properties

A national owner and developer of retail, residential and mixed-use properties that is executing a plan of sale to reduce debt and address liquidity challenges.

Adam Metz

CEO and President of Seritage Growth Properties.

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What they’re saying

“In 2025, we continued to execute our plan of sale. We generated total gross proceeds of $230.7 million and repaid $190.0 million of debt, leaving a balance of $50.0 million on our term loan facility. As we look ahead in 2026, the team is focused on continuing to execute on the monetization of our remaining assets, many of which are currently in the market. In addition, we are pursuing several different financing alternatives to address our upcoming term loan facility maturity and we are also continuing to explore the possibility of a strategic transaction now that we have a simplified portfolio.”

— Adam Metz, CEO & President

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Seritage's liquidity challenges and the potential need for a strategic transaction highlight the ongoing pressures facing retail REITs as they navigate shifting consumer behaviors and a volatile real estate market.