Servicer ends $180M pre-foreclosure at RFR’s 17 State in FiDi

Special servicer Rialto Capital Advisors, representing the securitized trust known as Series 2014-C23, halted the action it had initiated in early December to foreclose on a $180 million loan secured by RFR Holding’s 17 State Street in the Financial District. The motion to discontinue the case was filed yesterday in New York State Supreme Court in Manhattan. The filing does not provide any reason why the action was terminated.

In that action, Rialto alleged a maturity default for the loan secured by the office tower 17 State Street.

This case was the sixth time in 2024 that Aby Rosen and Michael Fuchs’s RFR Holding had been the respondent in a pre-foreclosure action against one of its buildings.

Case LINK
Office properties have declined in value and the number of large foreclosures and steeply discounted sales has risen. Also in early December, a special servicer filed a $670 million pre-foreclosure at RXR Realty’s 230 Park Avenue.

RFR Holding bought the building in 1999 for $118.25 million from TIAA according to city property records. Then in from borrowed $180 million in two loans originated by JPMorgan Chase for $98 million and $82 million.  The complaint alleges a maturity default, with the loan not repaid by August 1, 2024. The total balance due was $183,496,856 as of November 1, 2024.

Direct link to the property’s ACRIS page.