After snapping up the megamall at court-ordered auction for bargain basement prices, new owners of the Palisades Center have made a public declaration: They’re here for the long haul.
A week and a half after purchasing the mall for a mere $175 million, Black Diamond Capital Management issued a Feb. 13 press release stating that the company plans to be “long-term owners” of the 2.3 million-square-foot property in West Nyack and “to invest in its continued evolution as a premier regional retail, dining, and entertainment destination.”
Black Diamond is affiliated with BD Palisades Holdings, LLC, which was the most recent plaintiff in a foreclosure suit against the mall.
“Palisades Center is an irreplaceable asset serving one of the most affluent and densely populated trade areas in the Tri-State region,” Black Diamond Capital Management founder and managing partner Stephen H. Deckoff said in a statement. “We see significant value in this property and intend to reinvest in the center, enhance the tenant mix, and position Palisades for long term success.”
The statement also said that the Spinoso Real Estate Group would continue as manager of the West Nyack property that’s bounded by busy Route 59, Route 303 and the New York State Thruway.
Spinoso was made the mall’s manager by a court-ordered receiver in 2024.
“Spinoso Real Estate Group has demonstrated exceptional operational discipline and leasing execution, and we are pleased to continue our partnership as we move forward,” Deckoff said.
How Palisades mall ended up on the auction block
This month’s auction and sale wrapped 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.
When the original loan was taken out, the mall’s value was pegged at $881 million.
In 2023, with the 2016 loan still outstanding, the debt holders went to court to seek foreclosure. Wilmington Trust was the original plaintiff.
The debtors included EklecCo NewCo LLC, a subsidiary of Syracuse-based Pyramid Cos.; Queens Comic’s NewCo LLC; Riesling Associates; and Three J’s Family Trust.
BD Palisades bought that disputed debt in 2025 for a fraction of the cost. The court allowed BD to take over as plaintiff in the foreclosure suit.
Meanwhile, the mall’s value plummeted. In July 2024, the mall’s market value was listed as $300 million in a property tax settlement case with the town of Clarkstown and other taxing entities. By September 2025, Morningstar Credit reported the mall property’s assessed value as $191 million.
Megamall’s sparkle dulls. Can Palisades Center bounce back?
The mall opened in 1998. But plans garnered controversy before the first shovels were in the ground. Clarkstown planning board meetings, usually sleepy procedural affairs, drew crowds of up to 1,000.
While the mall’s value has diminished over the decades, it remains a large taxpayer for the town of Clarkstown, school district and county.
Black Diamond’s statement said its plans for the Palisades Center aligns with the company’s 20-year history of acquiring and then “maximizing performance of underperforming assets.”
The mall, Black Diamond asserted in its recent press statement, has the demographics to succeed.
The new owners reported that the Palisades Center attracts about 12 million visits annually, ranking among the top-performing super-regional centers in the Northeast, and serves a 70% trade area of more than 2.2 million people with an average household income of more than $150,000.
Spinoso Real Estate Group also reported that it’s mounted a “stabilization and repositioning strategy.”
“With a committed long-term owner and a clear vision for reinvestment and merchandising, the center is well positioned to attract the next generation of flagship retailers and experiential concepts,” Carmen Spinoso, CEO of Spinoso Real Estate Group, said in the press statement.
This article originally appeared on Rockland/Westchester Journal News: Palisades Center’s new owner commits to mall’s ‘long-term success’
Reporting by Nancy Cutler, Rockland/Westchester Journal News / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
