Rudin’s $425M CMBS Loan on 32 Avenue of the Americas Hits Special Servicing
By Andrew Coen September 15, 2025 2:28 pm
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A $425 million commercial mortgage-backed securities (CMBS) loan secured by 32 Avenue of the Americas, a 1.2 million-square-foot office tower in Tribeca, has entered special servicing due to occupancy struggles ahead of its November 2025 maturity date, according to an alert from Morningstar Credit.
The loan — part of the COMM 2015-LC23 conduit CMBS deal — saw its 2024 cash flow levels fall 49 percent compared to its 2015 issuance driven largely by tenant losses that dropped the 27-story building to 57 percent leased as of June 2025. Rudin Management has owned the Midtown South property, which was previously known as the AT&T Long Distance Building, since 1999.
Rudin has engaged with Iron Hound Management Company about a modification for the loan, sources told Commercial Observer.
“We proactively requested that our loan on 32 Avenue of the Americas be transferred to the special servicer so that we can begin discussions on a potential modification prior to the loan’s maturity in November, “ a Rudin spokesperson said in a statement. “We remain current on our loan payments and are working in good faith with our lenders toward a mutually beneficial agreement.”
David Putro, senior vice president at Morningstar Credit, noted that the two biggest tenants lost at 32 Avenue of the Americas were iHeartMedia and Dentsu Holdings.
iHeart, whose lease expired in 2022, accounted for 14.6 percent of the building’s space and 11.3 percent of underwritten rent, according to Putro.
Dentsu comprised 14.5 percent of the property’s leasing space and 11 percent of the rent.
“It was on a number of various leases with staggered expirations,” said Putro of Dentsu, which has not vacated the building entirely. “They’ve gone from 169,000 square feet when the loan closed to 7,600 feet currently.”
32 Avenue of the Americas is a massive office building one block south of Canal Street that occupies an irregularly shaped block bordered by Avenue of the Americas, Church Street, Walker Street and Lispenard Street.
Andrew Coen can be reached at acoen@commercialobserver.com
