The fate of the Palisades Center mall is hanging in the balance as it gets set to hit the auction block next month. This 2.2 million-square-foot megamall located in Rockland County could be in new hands after years of financial woes. The scheduled auction on Feb. 4 will take place in a Manhattan courtroom, with the property estimated to fetch around $463 million, the New York Post reported.
Plagued by debt since 2016, the mall's owners have been unable to fulfill their financial obligations resulting in a loan of more than $418 million going unpaid. Despite loan extensions and forbearance agreements, the money was never recovered, leading to the current foreclosure situation, detailed lohud. The mall's ownership, which includes EklecCo NewCo LLC, Queens Comic’s NewCo LLC, Riesling Associates, and Three J’s Family Trust, finds itself facing the reality of ceding the property to the highest bidder soon.
In past times, the Palisades Center was a retail powerhouse, drawing annually as many as 24 million visitors, according to the mall's website. Anchor stores and over 225 shops, eateries, and entertainment venues made it a bustling hub for commerce and recreation. However, its fortunes have dimmed since then, falling victim to the larger trends challenging brick-and-mortar retail spaces across the country.
The auction set by state Supreme Court Judge Frances Kahn III comes after a series of financial missteps by the center's owners. Back in October 2025, BD Palisades Holdings, a division under Black Diamond Capital Management, bought out the delinquent loan, originally held by Wilmington Trust. This transaction, reported by lohud, saw the loan changing hands at a significant loss.
Despite the imminent auction, town officials remain optimistic about the mall’s potential. George Hoehmann, supervisor of Clarkstown, told News12 Westchester, "It’s a well-performing asset, and we’re confident that it will have a bright future going forward," signaling hope for the mall's future regardless of ownership, as per the New York Post.
Currently under the management of Spinoso Real Estate Group, appointed by the court, the Palisades Center remains among the nation's largest malls. Though it has witnessed a dip in value over the years, it still contributes significantly to the tax base of its home in Clarkstown, the local school district, and the county.
