The Palisades Center Mall has been sold through a foreclosure auction for $175 million, marking the latest chapter in a years-long financial dispute tied to the massive shopping complex.
Court records indicate the winning bidder was BD Palisades Holdings LLC, an entity connected to Black Diamond Management, which had acquired the mall’s debt and pursued foreclosure. The auction was held Wednesday at the New York State Supreme Court courthouse in Manhattan, with BD Palisades submitting the sole bid.
The transaction brings to a close a foreclosure case that began in 2023 after the mall’s ownership allegedly defaulted on a $418.5 million loan originated in 2016. By the time the court issued its final judgment, the amount due — including interest and costs — exceeded $463 million.
The debt was initially held by Wilmington Trust before being purchased by BD Palisades in 2025 at a steep discount, according to court filings. The borrowers named in the case include EklecCo NewCo LLC, Queens Comic’s NewCo LLC, Riesling Associates, and the Three J’s Family Trust.
Throughout the court proceedings, day-to-day operations at the mall were overseen by Spinoso Real Estate Group, which was appointed by the court as property manager. It remains unclear whether that arrangement will continue under the new ownership.
The $175 million figure appeared on the court’s foreclosure surplus monies form, reflecting the value assigned at the auction. Further details regarding future plans for the Palisades Center have not yet been disclosed.