RXR and SL Green's majority-owned office skyscraper, Worldwide Plaza, has been facing trouble for over a year now. Now, lenders Goldman Sachs, Deutsche Bank and a trustee acting on behalf of the debt holders of the asset, have filed a foreclosure suit against the 1.8 million square foot tower in the New York County Supreme Court, a document shows.
When RXR and SL Green originally acquired a majority stake in the Hell's Kitchen asset in 2017, Goldman and Deutsche provided a $940 million loan.
The issues, according to the suit, began in 2024, after Cravath, Swaine & Moore LLP left the site following lease expiration, resulting in more than 30 percent of vacant space alone at Worldwide Plaza.
"In August 2024, the Mortgage Borrowers' ability to make their debt payments took a significant hit when the Office lost its largest tenant," the plaintiffs said in a suit.
Specifically, the complaint alleges that the building owners failed to make a $2.92 million interest payment in December, followed by not covering $6.45 million of the $21.58 million full property tax bill a month later.
New York REIT Liquidating operates a 49.9 percent stake in Worldwide Plaza — but Bisnowreports that SL Green said that the minority owner attributes "little to no value to the asset," while retaining equity in the property.
Both RXR and SL Green have sued to stop a foreclosure of the property, according to Bisnow. While a judge blocked the attempt last month, the building owners have moved to appeal and put a hold on the auction process, the news outlet further noted.
SL Green is still hopeful it can find common ground.
"We have a plan to revitalize the building and the capital to execute it," an SL Green spokesperson told Bisnow.
"This administrative filing is a procedural step and all parties are separately actively engaged and working collaboratively toward a resolution."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.