Pandemic deals a blow to one of the nation’s largest malls
The 2.2 million-sq.-ft. Palisades Center in West Nyack, N.Y., may have a tough time coming back following the coronavirus shutdown.
The property’s $388 million debt has been transferred to a commercial mortgage-backed securities special servicing unit because of “imminent monetary default,” according to a report in the Rockland County Business Journal.
The website credited an anonymous source who said that debt originators JP Morgan and Barclays have approached brokers to discuss sale of the property. Several companies, including Mall of America and American Dream Mall owner Triple 5, have apparently expressed interests in acquiring Palisades Center.
Syracuse-based Pyramid Management Group, owner of the mall that was built in 1998, holds the loan for 1.8 million sq. ft. at the property. The rest of the space is owned by Macy’s and Lord & Taylor.
The Rockland County Business Journal reported that Palisades Center is the 11th largest mall in the United States.
Lord & Taylor, J.C. Penney, and Bed Bath & Beyond closed their stores at Palisades Center over the past few years, dropping the occupancy rate to 82%. Another anchor tenant that has done no business since the shutdown is the 21-screen AMC Palisades Theater.