The Real Deal New York

Glimmer of hope for Aby Rosen at Lever House

Competitive lending environment, Midtown rents could work in RFR's favor

July 10, 2015 05:30PM

Lever House at 390 Park Avenue in Midtown (inset: Aby Rosen)

Lever House at 390 Park Avenue in Midtown (inset: Aby Rosen)

A competitive lending environment and skyrocketing Midtown rents could work in Aby Rosen’s favor as RFR Realty seeks to refinance its defaulted $100 million mortgage for Lever House at 390 Park Avenue.

Reports emerged earlier this week that RFR defaulted on the 21-story office building’s mortgage, which expired in March. The company was reportedly unable to refinance the loan due to concerns that rent on the building’s ground lease – which RFR entered into with the Korein family in 1998 — is set to triple in 2023 to more than $20 million annually.

But market sources are said to be optimistic that Lever House’s location and high profile could enable RFR to secure the refinancing it needs, according to the New York Observer.

“Based on rents in that market, the incredible location and special nature of the asset, while not simple, I believe it could be financed right now given the opportunity,” according to Andrew Singer, CEO of mortgage brokerage The Singer & Bassuk Organization.

The landmarked, mid-century office building – located on Park Avenue between East 53rd and East 54th streets – is reportedly seeking rents in the $160 per square foot range. [NYO]Rey Mashayekhi