Retail Mall Palisades Center Sells for $175M Post-Foreclosure

Retail mall Palisades Center in New York sold for $175M post-foreclosure, less than half its mortgage value. Black Diamond Capital to revamp.

February 18, 2026

Valerija I.

Retail mall Palisades Center sold to Black Diamond Capital for $175M after foreclosure.
The sale price was less than half the previous mortgage and below its last appraised value.
Spinoso Real Estate Group will continue managing the property under new ownership.
New owner plans to invest in tenant mix and refresh the mall as a retail destination.

Key Takeaways

Distressed Asset Finds New Owner

According to Bisnow, retail mall giant Palisades Center in West Nyack, NY, has exchanged hands following a foreclosure, with Black Diamond Capital Management acquiring the 2.3M SF property for $175M. The mall, one of the largest in the US, had seen its value tumble and its previous owner default on $418.5M in debt before entering receivership.

Discounted Sale Reflects Market Shifts

Black Diamond, which has $11B in assets under management, purchased Palisades Center well below its $463.4M list price and 2023 appraisal of $209M. The mall was once valued at $881M in 2016. The new owners acquired the debt for $170M before winning the auction as the sole bidder. Spinoso Real Estate Group, receiver since 2024, will continue overseeing day-to-day operations and leasing.

Future Plans and Market Context

Black Diamond intends to reinvest in the retail mall, aiming to update its tenant mix and secure its future as a key retail, dining, and entertainment hub. Palisades Center draws 12M annual visitors and serves a wealthy, dense trade area, with over 2.2M residents nearby and average incomes above $150K. The move comes as retailers increasingly target affluent shoppers amid shifting consumer trends and ongoing economic uncertainty.

Retail Mall Value Trends

Like many regional malls nationwide, Palisades Center has suffered from departing anchor tenants and lower foot traffic, losing stores like JCPenney and Lord & Taylor. The sale signals continued pressure on legacy retail mall valuations, particularly as lenders and investors reassess risk across retail assets facing shifting consumer patterns. That repricing dynamic mirrors recent activity in Southern California, where nearly $1.9B in multifamily, retail, and other commercial properties sit within designated wildfire zones in Pacific Palisades and Eaton, underscoring how both environmental and market pressures are reshaping asset values nationwide.