With its $670M mortgage tied to the landmarked office building at 230 Park Ave. rapidly approaching maturity last year, RXR Realty negotiated a forbearance agreement with the loan's special servicer to give it time to come up with a plan to rescue the Helmsley Building. The 1.4M SF Midtown office tower is historic and is currently more than 80% leased, and with some tenants vacating next year, Scott Rechler’s firm is looking into alternatives for the property, like a partial conversion to residential use. Another loan modification shouldn’t be an issue. After all, RXR is among the largest, best-capitalized landlords in New York City. But these days, that's no longer enough. SL Green’s Green Loan Services stepped in as the new special servicer last month and now plans to initiate a foreclosure action even as it continues to negotiate a loan workout, according to commentary on Morningstar Credit’s database. The forbearance agreement expired this month and wasn't extended. 
Green Loan Services isn’t alone in deciding to pursue foreclosure against landlords with portfolios worth billions. As more loans approach maturity and liquidity returns to the market, foreclosure actions are on the rise. Lenders are increasingly reaching for the keys — starting with high-profile properties.“If they see a… Read the full story here. | 
