RFR’s Troubles Mount As Lower Manhattan State Street Tower Heads To Special Servicing

RFR's 17 State St., the 1988-built semi-circular tower in Battery Park City.
Rfr's 17 State St., The 1988-Built Semi-Circular Tower In Battery Park City.

More trouble could be on the horizon for Aby Rosen’s RFR after a missed payment on a Lower Manhattan office tower.

The landlord has missed a balloon payment for 17 State St., a 42-story office tower in Battery Park City. The $180M CMBS loan is now headed to special servicing, according to a Morningstar Credit alert.

The loan is split into a $105M sum, which matured on Aug. 1, and a $75M section that matured on Aug. 6. Both parts of the loan had been current throughout the loan’s term, Morningstar’s database shows, but RFR missed the final balloon payment on both.

The building’s net cash flow was 16.7% above the building’s underwritten level, according to Morningstar’s commentary. Meanwhile, just 74K SF of the building’s total 571K SF is vacant, according to availabilities listed on RFR’s website.

The building also has a $40M mezzanine CMBS loan, Morningstar’s database shows.

“As one of the premier class-A trophy office towers in lower Manhattan, 17 State Street continues to perform well, and we will be refinancing the existing debt in the near future,” a spokesperson for RFR told Bisnow by email.

The 17 State St. delinquency follows a string of difficult situations for RFR across NYC.

On Thursday last week, lenders Citibank and JPMorgan Chase filed a foreclosure suit connected to a $180M loan for 475 Fifth Ave., RFR’s 275K SF office tower near Bryant Park that is more than 90% leased but still behind on its payments.

Less than a week prior, a Blackstone and Rialto Capital joint venture that has an equity stake in what was once Signature Bank’s loan book filed to foreclose on loans backed by four RFR properties following several months of default.

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