The Palisades Center mall in West Nyack, New York, was auctioned after foreclosure. An affiliate of Stephen Deckoff’s Black Diamond Capital Management won the property Wednesday with a $175 million credit bid, meaning no new money was spent.
The Black Diamond branch had purchased the debt on the property on October 6.
The auction marks a new low in the decline of the regional shopping center, which was once valued at $881 million. The most recent appraisal gave it a 78 percent haircut, dropping its value to $191 million.
The sale of the debt to Black Diamond in October also resolved the mall’s loan, which had been securitized and sold to investors.
The original investment cost a loss of $231.4 million. Holders of Class B, C and D bonds were completely wiped out. Class A lost about 32 percent of its value, to the tune of $72 million.
Pyramid Management Group developed the mall in the late 1990s. In 2016, it took out a $418.5 million refinance loan on the property.
But soon after, performance started to falter. JCPenney vacated its space in 2017, followed by Lord & Taylor in 2019. Those anchor spaces have not been reoccupied.
The pandemic brought new pain. Revenue fell by nearly $20 million – from $80.4 million in 2016 to $61.8 million in 2022, according to Morningstar Credit. That same year, the occupancy rate fell to 78 percent and the loan was transferred to a special service for maturity and monetary default. In 2023, expenditures amounted to 60 percent of revenues.
According to Morningstar, current tenants of the four-story, 1.9 million-square-foot building include Home Depot, Target, BJ’s Wholesale, AMC and Dick’s Sporting Goods. The most recent data, from 2024, shows that sales have fallen even further, to $55.2 million.
Pyramid Management Group recently lost two other malls to foreclosure: the Aviation Mall in Queensbury, New York, and the Hampshire Mall in Hadley, Massachusetts, according to reporting from Syracuse.com.
Neither Black Diamond nor the borrower’s lawyers immediately responded to a request for comment.
#Palisades #Center #shopping #center #auctioned #lender #Black #Diamond #Capital