Rialto Capital takes title to APF’s Midtown West office in foreclosure valued at $46.9M

Rialto Capital Management through the entity RSS Comm2014-Ccre15- Ny W4f, LLC through a judicial foreclosure for the office building (O6) at 25 West 45th Street in Midtown West, Manhattan. The expected use is hold for sale. The prior owner, APF Properties, lost the asset through this foreclosure auction. The city valued the transfer at $46.9 million.
The deal closed on April 17, 2026 and was recorded on April 29, 2026. The property has 187,567 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $250 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on January 31, 2022, for $64.2 million. The signatory for APF Properties was Christy DeMelfi . The signatory for Rialto Capital Management was Adam Singer . The contract date was April 17, 2026. The former owner was APF Properties, led by Kenneth S. Aschendorf, who lost it in the action 850160/2024 filed in New York County Supreme Court. PincusCo does not considered this an arm’s length transaction since it’s the lender taking back a property.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Rialto Capital Management purchased seven properties in five transactions for a total of $38.2 million and sold two properties in two transactions for a total of $16.7 million over the past 24 months.
The seller APF Properties had not purchased any other properties and sold one property in one transaction for a total of $67.2 million over the same time period. The 187,567-square-foot property generated revenue of $10.5 million or $56 per square foot, according to the most recent income and expense figures.
The Real Deal reported on February 6, 2026 that APF Properties lost the property to its lender.

The property

The office building in Midtown West has 187,567 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,041 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $55.7 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $70 million commercial foreclosure concerning a loan filed on May 21, 2024, by Comm 2014-CCRE15 and Rialto Capital Advisors against APF Properties and Kenneth S. Aschendorf. In addition, according to city public data, the property has received one DOB violation and $3,110 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $4.5 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 41.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 54 percent of the neighborhood’s built space. There were 146 pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of nine of the 27 commercial properties representing 709,407 square feet of the 1,309,332 square feet. The largest owner is APF Properties, followed by Faraj Srour and then Arnold & Porter Kaye Scholer Registered.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Apf Properties owned at least six commercial properties in New York City with 982,060 square feet and a PincusCo-determined asset value of $751.7 million. Within the portfolio, all identified are office properties. The bulk, or 89 percent of the built space, is in Manhattan, with Bronx next at 10 percent of the space.

The buyer

The PincusCo database currently indicates that Rialto Capital Management owned at least four commercial properties with eight residential units in New York City with 124,524 square feet and a PincusCo-determined asset value of $174.7 million. The portfolio has $5 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 90 percent of the 124,524 square feet of built space are office properties, with condo properties next occupying 4 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Brooklyn next at 6 percent of the space.

Direct link to Acris document. link