Palisades Center to be auctioned on Feb. 4

Palisades Center, one of the largest U.S. malls at roughly 2.2 million square feet in West Nyack, New York, is scheduled to be sold at an auction on Feb. 4.

Palisades Center went into special servicing in September 2022 because of imminent loan maturity and monetary default. The loan defaulted in October 2022.

In 2025, Black Diamond Capital Management (through an entity called BD Palisades Holdings) bought the defaulted loan in receivership for a fraction of its value, but like many other Class B and C malls facing maturities, these malls are only worth a fraction of what they were worth a decade ago and those loans are underwater.

Palisades Center is very, very big but it is the only mall of its kind in Rockland County, N.Y. and draws from a large geographical area from Rockland County, Orange County, N.Y., and on Sundays, from Bergen County, N.J. where most retail transactions are prohibited due to Bergen County blue laws. In 2025, Simon Property Group sold the other mall in Rockland County after it de-malled and redeveloped into a lifestyle center, the Shops of Nanuet, to a local owner looking to add multifamily.

A thorough redevelopment analysis is required to enhance the Palisades Center asset. The property needs an owner that will invest considerable capital to redevelop it with other non-retail uses, particularly multifamily.

Read more: One of nation's biggest shopping malls to hit auction block (CoStar News)