- Judge allows Worldwide Plaza UCC foreclosure auction to proceed for Extell.
- SL Green and RXR lose bid to block sale of the senior mezzanine loan.
- Dispute involves Extell’s Gary Barnett and current owners SL Green, RXR.
- Worldwide Plaza remains about 40% vacant after Cravath’s exit in 2024.
Extell Moves Forward
According to The Real Deal, the legal battle over Worldwide Plaza has shifted in Extell’s favor. A New York state judge denied SL Green and RXR’s request to stop a foreclosure auction. The ruling allows Extell to move forward with a UCC sale of the senior mezzanine loan tied to the Midtown office tower.
The 49-story, 1.8M SF property at 825 Eighth Avenue has faced mounting distress. Its troubles deepened after major law firm Cravath vacated nearly 617K SF in 2024.
Court Decision Shifts Control
SL Green and RXR, the current owners of Worldwide Plaza, called the auction a “sham.” They claimed it was designed to steer the property to Extell’s Gary Barnett. Barnett had quietly acquired the senior mezzanine debt tied to the tower. The judge rejected these claims, stating contract terms must generally be enforced when negotiated by seasoned parties.
Although Extell is currently the only qualified bidder, the court found this did not make the UCC auction commercially unreasonable.
Get Smarter About What Matters in New York
Subscribe to our free newsletter covering the biggest commercial real estate stories across the five boroughs — delivered in just 5 minutes.
Why It Matters
The $940M senior CMBS loan on Worldwide Plaza entered special servicing after SL Green and RXR defaulted in July 2024. The default marked a continuation of broader financial trouble for the duo, who have faced mounting pressure across other Manhattan office assets. The upcoming UCC auction could give Extell major control over the property’s future. Prime office towers like Worldwide Plaza play a key role as Manhattan’s office market faces high vacancies and refinancing challenges.
What’s Next
SL Green maintains it still controls the asset and aims for a deal with the mezzanine lender. For now, Extell stands ready to shape the next chapter at Worldwide Plaza. The move highlights continued turbulence—and opportunity—in New York City’s office tower sector.
