Rialto is looking to sell the $100 million loan on Aby Rosen’s 90 Fifth Avenue, pitching the distressed office building as a potential condo conversion.
Jeff Krasnoff’s special servicer put the $104.5 million up for sale, inviting investors to bid on the debt or to make an offer for the property, should Rialto be able to get control of the title.
The vacant building is “positioned as a prime office HQ or world-class condo conversion project,” according to a marketing memo from Newmark.
It’s not entirely clear if — or when — Rialto or another investor could get control of the property, which would require a foreclosure or RFR agreeing to hand over the keys.
Rialto filed a lawsuit in February seeking to foreclose on the turn-of-the-century Midtown South building, alleging Rosen’s company defaulted when it failed to pay property taxes in 2023 and 2024. In late August, though, the judge overseeing the case approved Rialto’s request to withdraw its motion to declare RFR in default.
A spokesperson for Rialto was not immediately available for comment and a representative for RFR declined to comment. A Newmark team led by Adam Spies and Adam Doneger is overseeing the note-sale process.
RFR bought the building for $37 million in 2000, and refinanced in 2017 with a $104.5 million loan from Goldman Sachs, which sold the debt off to CMBS investors.
The 137,000-square-foot building had recently been partially leased to Compass, which had an 89,000-square-foot office there. Compass severed its lease, though, and now the 126,000-square-foot office portion is completely vacant.
Rialto and Rosen have sparred before, and in some instances have been able to work out deals. RFR negotiated a settlement when Rialto sued the company over 17 State Street. But the rules of engagement are stricter when it comes to CMBS investors, which Rialto is representing in this action.
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