One World Plaza owners SL Green and RXR have inked a deal to take the office tower out of special servicing. The two have modified the $940 million commercial mortgage-backed securities (CMBS) loan, according to a report from the Commercial Observer. Also, the two million square foot space carries three mezzanine loans that combine for another $260 million in debt.
The landlords first acquired a 49.9 percent stake in One World Plaza in 2017, when it was valued at $1.7 billion. New York REIT Liquidating owns the remaining 50.1 percent.
The move to work out a deal comes after the CMBS loan hit a monetary default and then got transferred to special servicing in September 2024. CO said that the office asset was negatively impacted by Cravath, Swain & Moore departing in August. The law firm tenant previously occupied 30 percent of the property. But that's not all, a report from Morningstar Credit revealed that cash flow was declining at One World due to higher expenses.
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