Lever House

Lever House in limbo : Bondholders move to foreclose on t上海千花网论坛

roubled property Will RFR lose control of office building?

Aby Rosen and Lever House at at 390 Park Avenue (Credit: Getty Images and RFR Holding)

While its neighbors prepare for upgrades and, in some case, complete overhauls, the Lever House sits in limbo.

RFR Realty, which controls the property through a 99-year ground lease with the Korein family, has been struggling to refinance an $85 million securitized mortgage, according to Crain s. The debt is three years overdue and its bondholders have moved to foreclose on the property. RFR s Aby Rosen and Michael Fuchs say they are working with lenders to resolve the issue.

But the company s rent resets in 2023 and is expected to jump from an annual $6 million to north of $20 million. RFR s inability to renew the lease would potentially leave bondholder s empty handed, which is why they are moving to take control of the property 上海千花网交友

at 390 Park Avenue.

The possibility of RFR losing the property has tenants wary. Planned 上海千花网龙凤论坛

departures could leave roughly 130,000 square feet (half of the building) empty. Currently, 13 percent of the building is vacant.

We are now in a limbo period, Mic上海龙凤论坛

hael Cohen, tristate president of Colliers International, told Crain s. Any tenant that will want to sign a long-term lease for this building is going to have to spend a good deal of money to fit out their premises. They ll want assurances that their lease won t be disturbed, and right now that s not possible to provide.

Meanwhile, the landmarked office building may soon face even fiercer competition in the neighborhood. Other buildings in the area — like 270 Park Avenue — are taking advantage of M上海贵族宝贝

idtown East s rezoning. [Crain s] — Kathryn Brenzel 

Tags: Aby Rosen, Commercial Real Estate, lever house, Real Estate Finance
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