A group of Korean insurance firms represented by Daol Asset Management has taken over RFR Holding’s 285 Madison Ave. at a UCC foreclosure auction.
)
Daol owned $205M of mezzanine debt tied to the building. The roughly $220M senior CMBS loan originally fell into maturity default in late 2022 before being extended.
When it matured again in December and RFR defaulted once more, Daol brought in management firm Ocean West Capital Partners and initiated foreclosure proceedings less than six weeks later, dodging a lengthy workout process.
“With Manhattan office leasing trends improving dramatically and increased investment activity in the market, the mezzanine lender concluded that its strongest course of action was to exercise its foreclosure rights and invest new capital to take control of the property,” an Ocean West press release said.
In a statement, a representative from RFR said that the landlord elected not to bid on the property “given its write-down of the property value driven by today’s capital markets environment.” The Promote first reported the UCC sale.
In 2017, the 25-story Grand Central office tower was appraised at $610M, according to Morningstar Credit. Last year, its valuation was slashed in half to $300M. Ocean West added that the property “remains well leased.”
“RFR is proud of its $190M investment in 285 Madison in 2012 and the creative redevelopment and leasing campaigns that increased the asset’s value dramatically, resulting in a successful $475M refinancing in 2018,” RFR's spokesperson said.
Ocean West said that 285 Madison is the latest in more than $2B of New York City assets that it has either acquired or advised upon for Korean institutional investors in the past 12 months.
In 2025, nearly 80% of Korean investors say they intend to increase their allocations in real estate both domestically and internationally, with value-add being the most popular investment strategy, according to a survey by CBRE. Korean net buying intentions are 10% higher than the Asian Pacific average.
"We have seen a change in tenor from the Korean lending community whereby they have become more aggressive in protecting assets located in strong markets,” Ocean West principal and co-founder Phil Choi said in a statement. “These investors represent some of the largest insurance companies and pension funds in the world, who have capital to execute a wide variety of strategies.”
Two months before the December foreclosure filing, a judge allowed two debt funds held by Daol to enforce a personal guarantee against RFR’s Aby Rosen and Michael Fuchs following their February 2024 default on the mezzanine loan.
Lenders have generally moved onto the offensive as the maturity wall grows. Many banks have begun purging bad debt to stabilize their books and return to lending.
RFR has been among the property owners caught with maturing debt and a portfolio filled with older office buildings that have fallen out of favor compared to new trophy towers.
It was evicted from its ground lease at the Chrysler Building in January and has faced numerous other foreclosure proceedings.
However, the firm has had some major wins that could offer a comeback. Among them is a string of refinancings in recent months, including a $1.2B CMBS loan for the Seagram Building and a $160M recapitalization at 475 Fifth Ave.
“As we continue to focus on key projects across our 100-property portfolio, our priority is centered on creating value and delivering an exceptional experience for our tenants,” the RFR representative said. “We remain excited to pursue new investment opportunities during this dynamic phase of the market cycle.”
)
)
)
)
)
)
)
)
)
)
)
)