Watch video of flooding aftermath in West Nyack NY by Palisades Center
Heavy rains July 14, 2025, caused flooding in the Lower Hudson Valley. [John Meore / lohud]
The Palisades Center is due to go up on the auction block next month.
A notice of sale was confirmed in state Supreme Court in Manhattan on Jan. 8.
The auction is set for 2:15 p.m. Wednesday, Feb. 4, at 60 Centre St., Room 252, New York, New York. The price for the property, court papers show, is estimated at $463,395,241.72 plus interest and costs.
The court-appointed referee, Clark A. Whitsett, did not respond to a request for comment.
A debt unpaid in 2016
The megamall’s been targeted for foreclosure 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.
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.
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.
Loan sold, and new plaintiff named
Wilmington Trust, which held the loan at the time, in 2023 filed a lawsuit in State Supreme Court in Manhattan to foreclose.
In October 2025, BD Palisades Holdings, owner of Black Diamond Capital Management, bought out the loan from Wilmington Trust for a fraction of its original value, according to The Real Deal Real Estate News, garnering heavy losses for investors.
BD Palisades then successfully petitioned state Supreme Court Judge Frances Kahn III to be replaced as the plaintiff in the foreclosure action.
What’s next?
A court document showed that a referee’s notice of sale was mailed on Jan. 7 to key parties, including the New York State Department of Taxation and Finance, was mailed. The sale has not been sent via public notice nor placed on the auction calendar. A settlement or other outcome is still possible.
According to court auction rules, immediately after the auction, a 10% deposit has to be paid to the referee and the Terms of Sale signed.
Meanwhile, Spinoso Real Estate Group in Syracuse now operates as property managers, appointed by the court.
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.
The mall’s value has diminished over the decades, 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.
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