Newburgh Mall to be sold at auction
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.