- Cushman & Wakefield has replaced SL Green as property manager of the nearly 2M SF Worldwide Plaza amid a court-supervised receivership.
- The 49-story Midtown office tower was just 51% occupied in June, with monthly net operating income running negative $484,000, according to the receiver.
- A three-way fight among CMBS bondholders, SL Green and RXR, and Extell Development could determine who ultimately controls the distressed asset.
Worldwide Plaza, a nearly 2M SF Midtown office tower, has lost SL Green as its property manager as a foreclosure battle over the distressed asset escalates, as noted by Bisnow. Cushman & Wakefield has taken over day-to-day management under a court-approved transition, adding another setback for owners SL Green and RXR.
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The change comes as the building contends with weak occupancy, negative cash flow and competing claims from its senior lenders and Extell Development. Court filings show the property remains under receivership while multiple parties pursue control of the asset.
A Court-Ordered Management Shift:
The management change stems from a foreclosure action filed in January 2026 by Goldman Sachs, Deutsche Bank and a trustee representing holders of the building’s $940M senior CMBS mortgage. A judge approved the transfer of management away from SL Green by July 1, after Hilco Global was appointed temporary receiver in March.
The receiver has since established new property bank accounts, obtained replacement insurance coverage, hired a tax consultant and brought in new leasing brokers. Wilmington Trust now represents the bondholders after Goldman Sachs and Deutsche Bank were removed as plaintiffs.
Worldwide Plaza’s Occupancy Problem:
The details underscore why Worldwide Plaza has become one of New York’s most closely watched distressed office assets. The 49-story tower lost its largest tenant when law firm Cravath, Swaine & Moore vacated 617K SF in 2024, and an appraisal in 2025 cut the property’s value by $1.4B.
SL Green reported 61% occupancy as of June 30, 2026, but the receiver’s June report put occupancy at only 51%. The receiver also reported monthly net operating income of negative $484,000. WNET is preparing to leave its 95K SF when its lease expires at the end of August 2026, while West Monroe Partners has sought an extension of an option related to its security deposit.
Retail tenants are also creating headaches. Default and eviction proceedings are underway for Body Factory, Bluedog Cookhouse and Bar, and a barbershop, while Cushman is reviewing a workout arrangement with Baires Grill.
A Crowded Fight for Control:
The ownership dispute extends beyond the senior mortgage. Extell acquired the building’s $190M senior mezzanine loan in October 2025, roughly a year after the landlords defaulted, then accelerated the debt and scheduled a UCC foreclosure auction.
SL Green and RXR sued to stop the auction, but Judge Andrea Masley declined to issue a preliminary injunction. The owners have appealed, leaving the UCC foreclosure fight unresolved while the separate CMBS foreclosure process moves forward.
Worldwide Plaza also carries a $70M junior mezzanine loan that is in monetary default, according to a 2026 SEC filing by New York REIT Liquidating LLC. The company retains a 49.9% interest in the property, while the SL Green-RXR joint venture owns the remaining 50.1%.
Why It Matters:
Worldwide Plaza illustrates how quickly a major Manhattan office asset can move from a leasing problem to a full capital-stack restructuring. The departure of one major tenant drove vacancy higher, weakened cash flow and contributed to a $1.4B valuation reduction, while lenders and mezzanine investors now have competing paths to recover their capital.
The stakes are particularly high for the CMBS market. Bloomberg previously reported that bondholders in the building’s single-asset CMBS debt could face losses of as much as $488M. The transition to Cushman & Wakefield also signals that lenders and receivers are increasingly willing to take operational control when an owner can no longer stabilize a property.
What’s Next:
The immediate focus is on leasing, tenant retention and the competing foreclosure proceedings. Cushman will inherit a building that needs to replace substantial lost occupancy while the receiver works through tenant defaults and upcoming lease expirations.
The bigger question is whether the asset ultimately changes hands through the CMBS foreclosure process, Extell’s UCC action or a negotiated recapitalization. SL Green Chairman and CEO Marc Holliday described Worldwide Plaza and other assets in the REIT’s alternative strategy portfolio as properties that need to be recapitalized during the company’s July 23, 2026, earnings call. For Worldwide Plaza, the management transfer suggests that process is already moving beyond the owner’s control.
