Town of Victor Plans Eminent Domain Acquisition of Eastview Mall Properties Amid Foreclosure Concerns
The Town of Victor is planning to acquire portions of Eastview Mall and nearby commercial properties through eminent domain as foreclosure looms. The town intends to transfer these parcels to Victor 2040 LLC, a move the mall's mortgage servicer, Rialto…
Rochester, NY, September 28, 2026 —
The Town of Victor is initiating a plan to acquire sections of Eastview Mall and adjacent commercial properties through the use of eminent domain, a process that allows a government entity to take private property for public use. This action comes as the mall faces impending foreclosure proceedings.
The town’s stated intention is to subsequently transfer these acquired parcels to a local entity named Victor 2040 LLC. The specific portions of the mall and the extent of the “nearby commercial properties” targeted for acquisition were not detailed in the information provided.
The proposed eminent domain action has drawn a sharp response from Rialto Capital, identified as the mortgage servicer for the mall. Rialto Capital has characterized the town’s move as a “debt evasion scheme.” The precise financial figures associated with the foreclosure or the mall’s debt were not disclosed.
Conversely, Victor 2040 LLC has put forth its justification for the acquisition. The company argues that the eminent domain process is a necessary step to safeguard the future viability of Eastview Mall. Their stated reasons include addressing existing development delays and concerns over alleged funding shortages that have impacted the property. Further specifics regarding the nature of these delays or the alleged lack of funding were not provided.
Eminent domain proceedings typically involve a public purpose determination and compensation to the property owner. The details surrounding the town’s assessment of public purpose and the proposed compensation, if any, were not made available. The timeline for the eminent domain process and the potential transfer of property to Victor 2040 LLC also remains unspecified.
The situation highlights a complex interplay between municipal development interests, private property rights, and financial distress within a commercial real estate context. The actions of the Town of Victor, Victor 2040 LLC, and the response from Rialto Capital will likely shape the future of Eastview Mall and its associated commercial landscape.
Story summarized from the original created by David Wheeler on www.whec.com, see more information here.
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