Eastview Mall Foreclosure and Victor Eminent Domain Plan: What It Means for Reinvestment

The fight over Eastview Mall in Victor has become one of the most consequential commercial real estate disputes in the Rochester region, with lenders on a $210 million mortgage pursuing foreclosure while the Town of Victor weighs using eminent domain to take five core mall parcels. The outcome will shape who controls reinvestment, tenant improvements and future redevelopment at the region's largest retail center Rochester Business Journal Town of Victor.

What happened

On August 24, 2026, the Victor Town Board adopted a resolution to schedule a public hearing and begin the process under New York's Eminent Domain Procedure Law to acquire five Eastview Mall parcels, with the intent to transfer title to Victor 2040, LLC Town of Victor. Victor 2040 is an entity created by the town and Wilmorite, the mall's longtime owner and operator 13WHAM.

The five parcels listed by the town are Eastview Commons, Commons Blvd, Main Mall, Theater and Vacant Lands Town of Victor. The proposed acquisition excludes interests owned by tenants and by the Ontario County Industrial Development Agency Town of Victor. Rochester Business Journal reported that the parcels make up most of the mall, excluding privately owned anchor stores and outparcels Rochester Business Journal.

The lenders moved first in court. U.S. Bank and Wells Fargo, as trustees for trusts holding the mortgage, filed a foreclosure action in New York County state Supreme Court on September 8, 2026, two days after the loan's latest maturity date FingerLakes1 Rochester Business Journal. 13WHAM reported that the lenders asked the court to appoint Spinoso Real Estate Group as receiver to run the mall while the case proceeds 13WHAM.

The town held its public hearing on September 28 at Victor Town Hall Town of Victor. Before the hearing, the lenders' attorney sent a 10-page objection letter, and the lenders said they will challenge any taking and may seek legal costs and damages FingerLakes1.

Key numbers

• $210 million: The 2012 refinancing mortgage held by the lenders Rochester Business Journal.
• $112 million: The current value Wilmorite cites, barely half the amount owed Rochester Business Journal.
• About $9.4 million: Disbursed to Wilmorite by special servicer Rialto Capital since January for operating expenses and tenant improvements, including about $1.2 million for the Brooks Brothers space, according to the lenders FingerLakes1.
• About $6 million: Reserve funds used for property taxes and PILOT payments, according to the lenders Rochester Business Journal.
• Nearly 4,000 jobs and about 20% of Victor's operating budget are tied to the mall, according to Town Supervisor Jack Marren Rochester Business Journal.

Reports differ slightly on the 2012 cash-out. FingerLakes1 cited the lenders as saying Wilmorite received about $55 million after an earlier $120 million loan was refinanced, while Rochester Business Journal reported $54 million FingerLakes1 Rochester Business Journal. The difference appears to be rounding.

The competing arguments

Wilmorite says Rialto has restricted access to funds for basic operations, maintenance, improvements and leasing, and that Rialto collected nearly $10 million in fees over three years without reducing principal Rochester Business Journal. The lenders call the eminent domain plan a debt evasion scheme and argue the town has not shown a legitimate public purpose 13WHAM.

Victor 2040 said the mall "supports more than 4,000 local jobs" and should be "not directed by a distant special servicer servicing Wall Street interests" Spectrum News. Under the town's plan, no taxpayer funds would be spent, and Victor 2040 would pay acquisition, legal and consultant costs FingerLakes1 Rochester Business Journal.

There is precedent on both sides. An appellate court rejected Victor's first attempt to take the former Lord & Taylor property for lack of "any conceivable public purpose," but a revised plan was upheld in 2024 13WHAM. That property was later leased to Bass Pro Shops Rochester Business Journal.

Why it matters to the construction market

Mall reinvestment depends on access to capital. Tenant fit-outs, facade work, roof and mechanical replacements and redevelopment of vacant boxes all require someone with the authority and money to approve them. While control is contested, owners, tenants and contractors face uncertainty about who signs contracts and releases funds.

The long-term stakes are larger. Rochester Business Journal reported that Victor has rezoned certain mall parcels twice in the past five years, allowing buildings as tall as five stories Rochester Business Journal. That points to a future that could include mixed-use or denser redevelopment, a pattern seen at malls nationwide.

Implications for owners, developers, contractors and subs

• Tenants: Fit-out approvals and landlord work allowances could slow if a receiver is appointed or control remains in dispute.
• Contractors and subs: Confirm who the contracting party is, and verify payment security, lien rights and funding sources before starting work at the mall.
• Developers: A resolution under local control could open the door to redevelopment under the town's updated zoning.
• Lenders and investors: The case is a test of how far a municipality can go to influence a distressed commercial property.

What to watch next

Watch for the closing date of the hearing record, which the town said will be noticed later, a town board determination and findings, any court challenge, and the court's decision on the receivership request Town of Victor 13WHAM. Under the EDPL, property owners seeking judicial review can raise only issues and objections presented at the hearing Town of Victor.

Bottom line

Eastview Mall is now a contest between foreclosure and eminent domain. Until it is resolved, the region's largest retail property faces uncertainty over who controls reinvestment, and contractors working there should take extra care on contract and payment terms.

Image credit: FingerLakes1. Image from the source article.

Sources

• Town of Victor: https://www.townofvictorny.gov/516/Eastview-Mall-Five-Parcels
• Rochester Business Journal, Sept. 30, 2026: https://rbj.net/2026/09/30/wilmorite-lenders-clash-eastview-mall-foreclosure-victor/
• Rochester Business Journal, Sept. 28, 2026: https://rbj.net/2026/09/28/lenders-eminent-domain-plan-eastview-mall-debt-evasion/
• Rochester Business Journal, Sept. 2, 2026: https://rbj.net/2026/09/02/victor-plans-eminent-domain-eastview-mall-future/
• FingerLakes1: https://www.fingerlakes1.com/2026/09/28/victors-bid-to-take-five-eastview-mall-parcels-goes-before-the-public-tonight/
• 13WHAM: https://13wham.com/news/local/eastview-mall-lenders-accuse-victor-wilmorite-of-debt-evasion-scheme
• Spectrum News: https://spectrumlocalnews.com/nys/rochester/business/2026/09/29/mortgage-lender-accuses-eastview-mall-owner--town-of-victor-of-attempting-to-avoid-debts