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Newburgh Mall to be sold at auction

February 19th, 2014

The Newburgh Mall, weakened by a sagging economy and strained by a battle to fight off a Route 300 incursion by the Marketplace at Newburgh, will be auctioned to the highest bidder at 10 a.m. on Monday, March 3 at the Orange County Courthouse in Goshen.

In foreclosure for the past two years, the Newburgh Capital Group, owners of the Newburgh Mall, reportedly had failed to make full payments on a $31.6 million mortgage since September 2011. Wells Fargo was the original complainant in the foreclosure action.

With interest and penalties, the debt now stands at $38.7 million. Whatever money is raised through the sale will go to the lender.

The Newburgh Mall is managed by Urban Retail Properties and a court-assigned receiver is collecting rentals from mall tenants. The sale is not expected to affect the tenants.

Newburgh Capital Group and Save Open Space, an environmental group that joined Newburgh Mall in fighting the Marketplace site plan proposal, lost several court battles, the most recent of those in December when a judge dismissed a suit in Westchester County Court. Eric Gordon, an attorney for Newburgh Capital Group, appealed that decision in January.

The Marketplace at Newburgh received a 12-month extension of its site plan at the Feb. 6 meeting of the Town of Newburgh Planning Board. Occupancy is now delayed until at least the fall of 2015.

  1. John Prima
    February 25th, 2014 at 10:14 | #1

    Finally, this place is being sold. Maybe this will finally allow the much needed development across the street to begin. Development that has been planned since 2004! Maybe if the Newburgh Mall spent time trying to renovate and attract new business instead of building frivolous law suits to prevent competition they could have avoided going into foreclosure. In the real world, competition and growth lead to an economic boost. Newburgh deserves this boost, not petty arguments to prevent new business. I hope this is a step to start moving Newburgh back to what it once was: an economic center and an award winning city.

  2. andrew
    March 13th, 2014 at 22:28 | #2

    I think that the development corporation that is building the Marketplace across the street should buy the Newburgh Mall and then move all the stores across the way in 2015. they can then turn around and tear down the current mall and build a parking structure that will be needed for the proposed 220 store venue across the street.

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