RFR Hands 285 Madison Avenue to Mezzanine Lender at UCC Auction
By Amanda Schiavo April 18, 2025 12:57 pm
reprints
Daol Asset Management, a Korean debt funds manager, has officially taken control of 285 Madison Avenue, which once belonged to Aby Rosen and Michael Fuchs’ RFR Holding.
Rosen and Fuchs faced foreclosure on the 25-story prewar office tower back in December following a default on a $222 million commercial mortgage-backed securities (CMBS) loan. Daol Asset Management was the lender on two mezzanine loans at 285 Madison, which totaled $205 million, as CO previously reported.
RFR opted not to bid on the building when it came up at a UCC auction earlier this week, a spokesperson for RFR told CO via email. (The Promote first broke the news.)
“After a decade of ownership and great stewardship of 285 Madison Avenue, RFR elected not to bid on the property given its write-down of the property value driven by today’s capital markets environment,” the spokesperson said. “RFR is proud of its $190 million investment in 285 Madison in 2012 and the creative redevelopment and leasing campaigns that increased the asset’s value dramatically, resulting in a successful $475 million refinancing in 2018.”
RFR has had a rough go of it over the last 12 months, with at least five prominent loans going into special servicing or facing foreclosure over the summer alone. Then in January RFR was evicted from the Chrysler Building after a New York State Supreme Court judge ruled that its ground lease with Cooper Union was terminated. Cooper Union had taken over control of the iconic skyscraper in November.
Still, it is not all doom and gloom, as RFR has recapitalized several key assets, including 475 Fifth and 17 State Street. The firm has also recently sold assets such as the Jaffa Hotel in Tel Aviv, the W Hotel South Beach in Miami Beach, and 980 Madison Avenue on Manhattan’s Upper East Side.
“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 spokesperson said. “We remain excited to pursue new investment opportunities during this dynamic phase of the market cycle.”
Amanda Schiavo can be reached at aschiavo@commercialobserver.com.
