Lending & Foreclosure
Verified Update
Pending
Receiver Hilco Global now controls Worldwide Plaza, with Cushman & Wakefield replacing SL Green as manager, as a $940 million CMBS foreclosure on the 1.8-million-square-foot Manhattan tower proceeds.
Under a court-approved transition effective July 1, Cushman & Wakefield replaced SL Green Realty Corp. as day-to-day manager of Worldwide Plaza, the 1.8-million-square-foot Manhattan office tower, ceding control to receiver Hilco Global while a $940 million CMBS foreclosure filed by Goldman Sachs, Deutsche Bank and the loan's trustee proceeds in New York County Supreme Court. A parallel fight over the property's mezzanine debt, in which Extell Development's Gary Barnett is pursuing a UCC Article 9 foreclosure sale, remains on appeal after Justice Andrea Masley denied SL Green and RXR's bid to enjoin the sale.
$940M senior loan (Goldman Sachs/Deutsche Bank, Series 2017-WWP); bondholders estimated to face losses up to $488M
Why it matters: Illustrates how quickly a sponsor can lose operational control of a trophy asset once senior lenders secure a receiver, even before any foreclosure sale occurs, and how competing senior and mezzanine creditors can pursue simultaneous, adversarial remedies against the same building on different timelines and legal standards. Owners and lenders across the distressed office sector should treat the case as a template for how receivership and UCC foreclosure tracks can fracture control of a single asset across parallel proceedings.
Jul 1, 2026
Supreme Court of the State of New York, New York County
Lending & Foreclosure
Verified Update
Filed
Houston non-traded REIT Silver Star Properties filed its second Chapter 11 in four years after a failed office-to-self-storage pivot, with over $65M in guaranteed loans in default.
Houston-based non-traded REIT Silver Star Properties filed its second Chapter 11 petition in four years on May 28, following a failed pivot from office assets to self-storage. Four guaranteed loan agreements totaling over $65M are in default, and a separate $5.75M promissory note on a self-storage property moved to foreclosure on June 2. The filing follows an SEC inquiry and a settled internal fraud/fiduciary-duty suit against the REIT's ousted founder, Allen Hartman, tied to an earlier $259M Goldman Sachs CMBS loan default.
$100M assets vs. $75M liabilities; $65M+ in defaulted loans
Why it matters: Illustrates how leadership litigation and governance disputes within a REIT can compound loan-covenant distress and precipitate repeat bankruptcy filings. Lenders and boards evaluating distressed CRE borrowers are increasingly treating unresolved founder/fiduciary-duty litigation as an independent credit risk factor, separate from asset-level performance, amid the broader wave of CRE loan maturities.
May 28, 2026
U.S. Bankruptcy Court, Northern District of Texas
