Palisades Center Mall in West Nyack sold in court foreclosure auction
The Journal News reporter Alexandra Rivera has your top story for Feb. 5, 2026.
- The sale wraps up a foreclosure suit against the mall’s owners that’s been wending its way through state Supreme Court in Manhattan since 2023.
- “This is a good thing and it’s not unexpected,” said Clarkstown Supervisor George Hoehmann.
The new owners of the Palisades Center shopping mall are the most recent holders of the debt.
BD Palisades Holdings LLC, which includes Black Diamond Management, was the last plaintiff in a foreclosure case against the mall. BD Palisades also was the only and winning bidder at the auction that took place Wednesday, Feb. 4, at the Supreme Court’s Court Street building in Manhattan.
The list price was $175 million on Supreme Court’s Foreclosure Action Surplus Monies Form.
The sale wraps up a foreclosure suit against the mall’s owners that’s been wending its way through state Supreme Court in Manhattan since 2023, when the Palisades Center’s owners were accused of failing to pay a $418.5 million debt on a loan taken out in 2016 for that amount.
“This is a good thing and it’s not unexpected,” said Clarkstown Supervisor George Hoehmann. He said town officials anticipate meeting with the principles of Black Diamond shortly.
Black Diamond Management is known for snapping up discounted debt and underperforming assets.
“We’re all invested in really bringing the mall back and for it continuing to be a vital component of the retail sector here in Clarkstown,” Hoehmann said.
Meanwhile, Spinoso Real Estate Group in Syracuse has been operating as property managers, appointed by the court. It was unclear if that role could continue. But, Hoehmann said, Spinoso had been cooperative and effective as far as the town is concerned.
“There has been substantial capital improvements made under Spinoso’s management,” Hoehmann said.
The court’s final judgment, court papers show, had been set at $463,395,241.72 plus interest and costs.
The original plaintiff was Wilmington Trust, but BD Palisades bought the debt in 2025 for a fraction of the cost.
The debtors are identified in court papers in state Supreme Court in Manhattan as EklecCo NewCo LLC, Queens Comic’s NewCo LLC, Riesling Associates and Three J’s Family Trust.
The 2.2 million-square-foot shopping and entertainment complex, less than an hour’s drive from New York City, was once among the most popular shopping destinations in the U.S. It is still among the largest.
Built in the late 1990s, the mall’s owners promised a cutting-edge shopping and tourism mecca and along with it a strong taxpayer for local government.
The plan took years to wend its way through approvals with plenty of community pushback.
Plenty of Rocklanders, to this day, would argue the mall never lived up to its potential, including as an economic engine for the region.
The mall’s value has diminished over the decades, and was hit hard by COVID-era shutdowns. But it remains a large taxpayer for the town of Clarkstown, school district and county.
In 2025, on Black Friday, the day after Thanksgiving, and during the Christmas break, the mall’s parking lots filled as foot traffic picked up over previous years.
How Palisades Center ended up in foreclosure
In 2020, with COVID pandemic travel bans socking shopping and entertainment, the Palisades Center and Wilmington Trust drew up a deal that extended a loan originally taken out against the property in 2016.
The new loan maturity date was Oct. 9, 2022. But the mall still didn’t pay.
The creditor and mall’s owner reached a “forbearance agreement” that gave the mall until Nov. 8, 2022, to come up with the money. The mall still didn’t pay, according to the lawsuit.
Wilmington Trust, which held the loan at the time, in 2023 filed a lawsuit in State Supreme Court in Manhattan to foreclose.
In 2025, the court allowed the plaintiff to change.
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