Blackstone alleges RFR defaulted on two Signature loans totaling $39M

The Blackstone Group through the entity SIG CRE 2023 Venture LLC, in care of its servicer Rialto Capital Advisors, alleges that RFR Holding and its principals are in default on two loans totaling $39 million. The loans are not secured by real estate, according to the suit.

Blackstone filed the suit yesterday in New York State Supreme Court in Manhattan. Case LINK

The now-defunct Signature Bank provided the two loans in 2022. The loans are a $35 million Term Promissory Note dated December 21, 2022 that matured on March 31, 2023 (and had an extension option to March 2024); and a $4 million Interest Only Promissory Note dated August 31, 2022 that matured on August 31, 2023. The suit says RFR principals Aby Rosen and Michael Fuchs are guarantors.

Court filings represent the position of one party and are not necessarily accurate or complete.

RFR Holding is a major commercial landlord in New York City and globally, but has lost several assets in the recent downturn.

The PincusCo database currently indicates that RFR Holding owned at least 16 commercial properties with 2,871,756 square feet and a city-determined market value of $1.2 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 87 percent of the 2,871,756 square feet of built space are office properties, with hotel properties next occupying 8 percent of the space. They are all located in Manhattan. One example is the Paramount Hotel building at 245 West 46th Street in Hell’s Kitchen.

According to the complaint, “By letters dated February 28, 2024, the Lender made written demand… no payment has been forthcoming.”
The federal government shuttered Signature Bank on March 12, 2023, and the Federal Deposit Insurance Corporation sold control of this and other loans in a $1.2 billion deal with buyer Blackstone Group on December 14, 2023.

RFR and its principals have not yet responded in court records.