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SL Green replaced as Worldwide Plaza manager in New York foreclosure fight
Cushman & Wakefield took over management under a court approved timeline, as the nearly 2M SF Midtown tower faces foreclosure linked to a $940M senior mortgage and was reported 51% occupied in June.
Cushman & Wakefield has replaced SL Green as property manager for Worldwide Plaza, a nearly 2 million SF Midtown office tower at 825 Eighth Ave, according to court filings reviewed by Bisnow.
The change comes amid an intensifying dispute over control that includes SL Green, RXR, CMBS bondholders, and Extell Development. In January, Goldman Sachs and Deutsche Bank, along with a CMBS bondholder trustee, sued to foreclose on the building tied to a $940M senior mortgage, and a judge approved removing SL Green from management by July 1.
Bisnow reports that the court also shifted which parties were leading the foreclosure effort, with Goldman Sachs and Deutsche Bank removed as plaintiffs, leaving Wilmington Trust to represent CMBS bondholder interests. As part of the transition, the temporary receiver set up new bank accounts, secured additional insurance coverage, and brought in a new tax consultant and leasing brokers.
The filings highlight ongoing operational strain: the building has been struggling since law firm Cravath, Swaine & Moore left a 617,000 SF space in 2024, and an appraisal later cut the property’s valuation by $1.4B. SL Green’s earnings statement put occupancy at 61% as of June 30, while the receiver’s June report said occupancy was 51%, with WNET preparing to move out when its 95,000 SF lease ends at month end and monthly net operating income reported at negative $484K.