Palisades Center Mall Faces Auction After Foreclosure
The Palisades Center, a massive 2.2 million square foot shopping mall located in Rockland County, is set to be auctioned next month, with estimates placing its value at around $463 million.
This once-thriving retail destination has been in foreclosure for almost three years, largely due to over $418 million in unpaid debt that has been accumulating since 2016. Reports indicate that this situation has led to its current predicament.
While ownership of the loan has shifted several times among creditors, the time is running out for the mall’s owners. They are gearing up to sell to the highest bidder in a Manhattan courtroom scheduled for February 4th.
The mall was initially developed by Pyramid Companies and is currently held by a real estate consortium, which includes entities like EklecCo NewCo LLC and Three J’s Family Trust, among others.
Bankruptcy attorney Michael Coplen described the situation as a straightforward foreclosure, similar to a homeowner failing to pay their mortgage. He noted that, while there might be some possible delays, no appeals have been filed to halt the auction process.
Opened on March 4, 1998, the mall’s grand opening featured Olympic figure skater Nancy Kerrigan, highlighting its significance. At its height, it boasted four anchor stores and over 225 shops as well as dining and entertainment options, attracting around 24 million visitors each year.
However, things took a turn for the worse in 2016 when the owners secured a $418 million loan. They sought an extension during the pandemic in 2020 but failed to meet the repayment deadline in 2022.
In 2023, Wilmington Trust, which held the loan, initiated foreclosure proceedings. The loan was sold at a loss to another creditor, leading to a notice of sale for the entire mall being issued on January 7th.
Despite these challenges, Clarkstown Supervisor George Homan, representing West Nyack, remains optimistic. He emphasized that the auction does not guarantee a sale and mentioned an upcoming court hearing in early February. Homan is confident that the mall is still a valuable asset and that any new owner would engage with the town regarding future plans.
