RFR seeks extension on 285 Madison loan

$235M CMBS loan on 511K sf office building set to mature in November

RFR's Aby Rosen and 285 Madison Avenue (RFR, iStock)
RFR's Aby Rosen and 285 Madison Avenue (RFR, iStock)

A loan at a Midtown office building is headed to special servicing as Aby Rosen’s RFR Realty seeks an extension on its maturity date.

The $235 million CMBS loan for 285 Madison Avenue was transferred to special servicing this week, the Commercial Observer reported. The special servicer is KeyCorp Real Estate Capital Markets.

The fixed-rate loan was securitized in a CMBS deal in 2017 and is set to mature in November.

In November 2017, RFR refinanced the 26-story property with $270 million in loans from Natixis Real Estate, replacing earlier debt provided by Goldman Sachs and Aareal Bank. Korea-based KTB Asset Management co-originated additional refinancing, bringing the total to $475 million.

RFR bought the majority interest in the 511,200-square-foot property in September 2016, paying $334.1 million for an 85 percent stake in the building. The transaction cut out GreenOak Real Estate, East End Capital and Downtown Properties from their stakes in the building. RFR and the partners paid $190 million for the 511,000-square-foot property in 2012 — the building was vacant at the time.

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The asset was 95 percent occupied as of September 30, according to CRED iQ.

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The asset’s biggest tenant is clothing company Tommy Hilfiger, which leases about 220,000 square feet at the building. The company isn’t going anywhere anytime soon, as its lease runs through Oct. 31, 2033. Ziff Capital Partners holds a 26,000-square-foot lease that isn’t up until 2026.

Aby Rosen recently sealed a deal for another office property, teaming up with Penske Media Corporation to finalize a $290 million purchase of 475 Fifth Avenue. Penske, which publishes Variety and Rolling Stone, contributed 50 percent of the equity in the partnership, a source told The Real Deal.

[CO] — Holden Walter-Warner