➤ Key Highlights
Palisades Center is scheduled for a public foreclosure auction following prolonged loan default.
The action stems from a $400M+ CMBS/SASB loan that failed to refinance post-pandemic.
The auction could establish a rare public price signal for large-format retail distress.
Outcome will influence CMBS recoveries, B-piece valuations, and lender strategy across similar assets.
Court filings show that the Palisades Center Mall in West Nyack, NY — a roughly 2.2 million‑square‑foot super‑regional mall — is slated for a referee‑run foreclosure auction on February 4 in Manhattan, with the sale notice listing a starting amount of $463.4 million plus interest and fees.
This stems from years of financial strain: owners failed to repay a $418 + million CMBS/SASB loan originally taken in 2016, even after extensions during COVID, triggering foreclosure actions starting in 2023. The debt has since traded hands at a steep discount, with Black Diamond‑linked interests stepping in as the plaintiff.
Local reporting confirms the auction notice and date, though town officials stress it’s not guaranteed to change hands — last‑minute settlements, appeals, or bankruptcy filings could intervene
➤ TAKEAWAY
For commercial capital markets, this matters because it will create one of the few publicly visible price references for a large retail CMBS asset in distress, at a time when buyers are circling and special servicing activity has been elevated. That kind of data point — whether from the actual auction or follow‑on trading — tends to accelerate pricing discovery and opportunistic B‑piece or whole‑loan activity across similarly stressed retail pools.
