- Lenders have filed a foreclosure suit against Worldwide Plaza after a $940M loan default.
- The mixed-use building’s appraised value has dropped 78% since 2017, now at $390M.
- Loss of anchor tenant Cravath, Swaine & Moore triggered the default and large revenue loss.
- SL Green and RXR, the main owners, have missed interest, tax, and other required payments.
Lenders Take Action
CoStar reports that lenders, including Goldman Sachs and Deutsche Bank, have begun foreclosure proceedings against Worldwide Plaza. The 49-story property spans nearly 2M SF in Manhattan.
The action follows the loss of a major tenant at the building. That departure triggered a default on a $940M CMBS loan. SL Green and RXR back the loan as the property’s primary owners.
Significant Value Decline
New appraisals show Worldwide Plaza’s value fell by nearly 80% since 2017, from $1.74B to $390M, according to CoStar data. The loss of law firm Cravath, Swaine & Moore, which vacated 620 KSF in 2024, accounted for nearly half of the property’s rental income and heavily impacted cash flow. SL Green and RXR began missing monthly payments in 2025, including more than $6.4M in property taxes. The distress mirrors other recent turmoil surrounding the property, including a court-approved move by a mezzanine lender to push the asset toward auction.
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Mixed-Use Property Challenges
Despite strong office leasing activity in Manhattan overall during 2025, older mixed-use assets like Worldwide Plaza face headwinds as tenants favor new or recently renovated buildings. The property also includes retail, theater, parking, and amenity components, complicating its repositioning. Extell Development, the mezzanine debt holder, recently received court approval to proceed with a separate foreclosure auction.
What’s Next
An SL Green spokesperson indicated plans and capital are in place for revitalizing the mixed-use asset, framing the foreclosure process as procedural. Active negotiations continue among all stakeholders. The future of Worldwide Plaza, a landmark on the Manhattan skyline, remains uncertain as foreclosure proceedings move forward.
