Black Diamond Acquires Palisades Center at Steep Discount, Betting on Retail’s Future
The Palisades Center, one of the largest malls in the U.S., has sold for $175 million at a foreclosure auction in a steep discount to both its prior valuation and outstanding debt. Black Diamond Capital Management acquired the 2.3-million-square-foot property in West Nyack, N.Y., (in Rockland County, about 30 miles north of Manhattan, N.Y.) as the sole bidder using a credit bid after purchasing the underlying loan last fall.
The sale price marks a sharp drop from the mall’s $881 million valuation in 2016 and sits well below the roughly $463 million outstanding judgment on the $418.5 million CMBS loan originated that year. The loan defaulted in late 2022, transferred to special servicing in 2023 and proceeded to foreclosure. The sale ends a long stretch of financial strain for former owner Pyramid Management Group of Syracuse, N.Y., which developed the mall in the late 1990s.
Pyramid defaulted on the 2016 loan amid post-pandemic revenue shortfalls; rising e-commerce competition; and the loss of major anchor tenants, including JCPenney and Lord & Taylor. Together, these factors led to foreclosure proceedings in 2023 and receivership in 2024. Black Diamond acquired the debt for roughly $170 million in October last year.
The mall’s sale comes amid mixed signals for retail more broadly. For instance, a wave of store closures has affected established brands, including Eddie Bauer, Pizza Hut, Red Lobster, Saks and GameStop. At the same time, U.S. Census Bureau data show that, as of Q3 2025, adjusted e-commerce sales accounted for 16.4% of total U.S. retail sales, implying that brick-and-mortar still represented 83.6%. And, while e-commerce rose 5.2% year-over-year from Q3 2024, physical retail continues to dominate overall sales. Additionally, Gen Z shoppers show strong support for physical retail with nearly two-thirds preferring to shop in person in order to browse and stumble across things they weren’t looking for.
Black Diamond has committed to investment in the mall’s future.
“Palisades Center is an irreplaceable asset serving one of the most affluent and densely populated trade areas in the Tri-State region,” said Black Diamond Founder and Managing Partner, Stephen Deckoff. “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.”