MALL SELLS FOR A MERE $175 MILLION: Palisades Center Sold at Foreclosure Auction After Years of Financial Struggles
By Community News Desk
WEST NYACK – After years of financial troubles and legal battles, the Palisades Center mall was sold at a foreclosure auction Wednesday, Feb. 4, 2026, for approximately $175 million. The winning bidder was BD Palisades Holdings LLC, a company tied to Black Diamond Capital Management, which had acquired the mall’s debt and pursued foreclosure.
The auction, held in Manhattan, came after the mall’s owners defaulted on a $418 million loan taken in 2016. Despite multiple extensions and restructuring attempts, the debt remained unpaid. Declining retail sales, anchor store closures, and pandemic-related pressures contributed to years of financial struggles, ultimately forcing lenders to seek foreclosure to recover their investment.
How the Mall Came to Foreclosure
The mall’s financial troubles began well before the foreclosure. After taking out a $418 million loan in 2016, the owners struggled to meet debt obligations as retail revenue declined. Several anchor stores, including Lord & Taylor and JCPenney, closed over the next several years, reducing foot traffic and rental income.
The COVID-19 pandemic compounded the problem with temporary closures, rent reductions, and added operational strain. Multiple attempts to restructure the loan and extend deadlines were unsuccessful. By 2023, Wilmington Trust, the mall’s lender, filed foreclosure proceedings after the owners defaulted.
Eventually, Black Diamond Capital Management purchased the mall’s debt at a discount and became the lead party in the foreclosure process, which culminated in today’s auction.
Throughout this period, Spinoso Real Estate Group managed day-to-day operations, leasing, and maintenance. Town officials have praised Spinoso for keeping the property functional and maintained, ensuring that tenants and shoppers could continue to use the mall despite the financial uncertainty.
A Mall with a Storied History
The Palisades Center opened in 1998 and quickly became one of the largest malls in the nation. Spanning 2.2 million square feet with over 200 stores, an AMC theater, ice rink, and even a Ferris wheel, it was designed as both a shopping and entertainment destination.
For decades, the mall served as a central gathering place for families, teens, and visitors from across the Hudson Valley. It also provided significant employment and property tax revenue for Clarkstown and Rockland County.
However, over the past decade, changing shopping habits, online competition, and the loss of major anchor tenants contributed to declining revenues and higher vacancies.
Local Leaders Respond
Both Clarkstown Supervisor George Hoehmann and Rockland County Executive Ed Day have long highlighted the importance of the property to the community, emphasizing its role in tax revenue, employment, and the local economy. Town officials plan to continue engaging with the new owners to ensure the mall remains a vibrant and valuable asset.
What Comes Next
While Black Diamond is not a traditional mall operator, analysts expect the firm will focus on stabilizing the property and exploring options for sale or redevelopment. Town officials have stressed that any changes will require coordination with local authorities to maintain the mall’s economic and community role.
For residents who have grown up with the mall as a landmark, today’s sale marks the start of a new chapter. Officials and community members hope the Palisades Center will continue to thrive and serve as a key part of Clarkstown and Rockland County’s economy for years to come.
Stay tuned for updates as the new ownership outlines plans and town officials continue discussions with Black Diamond representatives.
Timeline: Key Milestones at Palisades Center
1998 – Mall opens, featuring over 200 stores, an AMC theater, ice rink, and roller coaster. 2016 – Pyramid Companies take out $418 million loan to refinance and support operations. 2016-2020 – Anchor stores begin closing; online shopping reduces mall revenue.
2020-2022 – COVID-19 pandemic hits; temporary closures and rent reductions strain finances. 2023 – Wilmington Trust files foreclosure proceedings after loan defaults.
2023-2026 – Spinoso Real Estate Group manages daily operations, leasing, and maintenance, keeping the mall open and functional.
2025 – Black Diamond Capital Management purchases the mall debt at a discount.
Feb. 4, 2026 – Foreclosure auction held; BD Palisades Holdings LLC (Black Diamond) becomes new owner.