Officials search for financial solutions to keep Palisades Center from foreclosure on $418.5M loan
Local officials are searching for financial solutions to keep the Palisades Center in West Nyack from foreclosure.
A document filed by creditors last week, called a Commercial Mortgage Foreclosure complaint, claims that the mall owners, EklecCo and other Pyramid Management group affiliates, are overdue on paying back a more than $418.5 million loan taken out in April 2016.
It was supposed to be repaid during the pandemic, but the lenders and borrowers reached an agreement in 2020 to a new date in the fall of 2022 because of financial hardships from COVID-19.
The document states the mall defaulted on the loan because it was not fully repaid by that new fall date, and now, the creditors want everything sold off to get the money back.
Many in Rockland County are concerned, especially in Clarkstown where the mall is, because it is one of the largest sources of tax revenue for the community and the school district.
Clarkstown Town Supervisor George Hoehmann said Friday he has been in discussion with the mall.
He said they are working on things but could not add much more than that because this is a private matter between those parties.
He said the mall has been paying taxes.
"We were all surprised and concerned when we learned recently that their financial institution has moved to foreclose on them," Hoehmann said. "I think everybody has pledged to work together to see what we can do to make sure they remain a viable entity."
News 12 has requested a comment from Pyramid Management group, for comment but has not received a response.
The Palisades Mall is the 12th largest in the country when it comes to most space to lease out.