Seritage Nears Full Repayment of Major Berkshire Hathaway Loan

Seritage Growth Properties has made another substantial voluntary payment toward its term loan, bringing the real estate company to the brink of eliminating a debt that was once owed to Berkshire Hathaway. The firm’s disciplined financial strategy continues to yield significant results.

A Landmark Debt Reduction

On December 4, 2025, Seritage allocated $20 million as a prepayment directly to its Senior Secured Term Loan, which was originally provided by Berkshire Hathaway Life Insurance Company of Nebraska. This latest move cuts the outstanding balance on this specific facility to just $50 million. The loan’s principal has been reduced from an initial $1.6 billion, meaning the company has retired approximately 97% of this obligation since it began its aggressive repayment program in December 2021. In total, Seritage has repaid $1.55 billion toward this debt over that period.

The financial benefits of this deleveraging are tangible. The recent $20 million payment alone is projected to lower annual interest expenses by an estimated $1.4 million. Cumulatively, the company’s strategic repayments since late 2021 have reduced its yearly interest costs by roughly $110 million. These savings provide enhanced financial flexibility in a challenging property market.

Should investors sell immediately? Or is it worth buying Seritage Growth Properties?

Portfolio Reshaping and Market Sentiment

Funding this aggressive debt paydown has required a significant transformation of Seritage’s asset base. The company has substantially streamlined its property portfolio through dispositions. As of September 30, 2025, its holdings consist of 13 properties encompassing about 1.3 million square feet of space, alongside 198 acres of land.

The market took note of the recent debt payment announcement. On the day of the disclosure, Seritage shares closed at $3.33, representing a decline of 2.63%. The company’s current market capitalization stands at approximately $192.6 million. Analyst consensus currently rates the stock as a “Hold,” with a price target of $5.40. Observers note that achieving this target is contingent on the successful execution of the company’s remaining strategic plan.

The Final Stretch

Reducing the term loan balance to $50 million represents a critical milestone for Seritage. Management’s focus now shifts squarely to the operational management of its remaining 13 assets and the final retirement of the Berkshire Hathaway liability. Investors are closely watching the company’s approach to handling the last $50 million of this debt and assessing what value can yet be realized from the streamlined portfolio of real estate activities.