Rialto looks to sell loan on Aby Rosen’s distressed 90 Fifth Avenue
Rialto tries to sell $100M loan on Aby Rosen's 90 Fifth Ave, pitching it as potential condo conversion. Jeff Krasnoff's special servicer is inviting bids on debt or property, but unclear if anyone can gain control.
Rialto, the Miami-based mortgage lender, is looking to offload the $100 million loan on Aby Rosen's distressed 90 Fifth Avenue in New York City. The lender is pitching the vacant office building as a potential condo conversion, according to a marketing memo from Newmark.
The loan, which was issued in 2016, has a balance of $104.5 million and is currently held by Jeff Krasnoff's special servicer. Rialto is inviting investors to bid on the debt or to make an offer for the property, should they gain control of the title.
The marketing memo touts the building's prime location and potential for a world-class office headquarters or luxury condo conversion project. However, it is not clear if or when Rialto or another investor will be able to gain control of the building and proceed with the conversion.
According to sources, the property has been struggling to find tenants and currently sits vacant. The building has also faced legal challenges, including a lawsuit from a former tenant who claimed the landlord failed to maintain a safe and habitable environment.
It remains to be seen if Rialto will be successful in selling the loan or if another investor will be able to take control of the troubled property. But with the building's prime location and potential for a luxury conversion, the sale is sure to draw interest from potential investors in the real estate market.