Troubled RFR Holding Facing Another Foreclosure at 17 State Street

It’s been a pretty rough year for Aby Rosen and Michael Fuchs’s RFR Holding, which is facing yet another foreclosure at its office tower at 17 State Street in New York City.

After a Manhattan judge evicted RFR from the Chrysler Building last month, the troubled landlord is now facing foreclosure at its 42-story Financial District building after being in default on a $180 million loan for the property since August.

Lender Wilmington Trust and special servicer Rialto Capital filed the foreclosure action in New York State Supreme Court on Tuesday, according to Crain’s New York Business, which first reported the news.

J.P. Morgan originated the commercial mortgage-backed securities loan in July 2014. Wilmington Trust became the registered holder of the loan in 2019, city records show.

“17 State Street remains one of the most sought-after office properties in Downtown Manhattan,” a spokesperson for RFR said in a statement to Commercial Observer. “RFR continues to work with the special servicer through its procedural steps, and is committed to maintaining its long-standing stewardship of this iconic building, a legacy it has upheld for over 20 years.”

Spokespeople for Wilmington Trust and Rialto did not immediately respond to requests for comment.

RFR — which is also facing foreclosure at 475 Fifth Avenue, 90 Fifth Avenue, One Jackson Square and 219 East 67th Street — has a few weeks to respond to the latest foreclosure actions at 17 State Street, Crain’s reported.

The 570,696-square-foot office building at the corner of State and Pearl streets near Battery Park is currently home to tenants including software company Amelia and investment management firm Alphadyne Asset Management.

While things aren’t looking great for RFR, there has been some good news for the landlord. Just last month, RFR sold its SoHo retail building at 102 Greene Street to a private buyer for $46 million, CO previously reported. And in June, RFR offloaded 980 Madison Avenue on the Upper East Side to Bloomberg for $560 million, Crain’s reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.