New York REIT Liquidating LLC Reports Loan Defaults and Foreclosure

What Happened

• New York REIT Liquidating LLC (NYRT) reported that loans secured by One Worldwide Plaza (825 Eighth Avenue, NYC), held indirectly through ARC NYWWPJV001, LLC and WWP Holdings, are in default. The $940,000,000 first mortgage is in monetary default as of December 2025. A $190,000,000 senior mezzanine loan has been in monetary default since September 2024 and was acquired by an Extell affiliate (WWP Mezz Investment Company LLC) on October 29, 2025, which declared default and accelerated the debt. A $70,000,000 junior mezzanine loan is also in monetary default.
• The First Mortgage Lender (Wilmington Trust, as trustee for Worldwide Plaza Trust 2017‑WWP) commenced a mortgage foreclosure action (Wilmington Trust, N.A. v. WWP Office, LLC et al., Case No. 850068/2026). On March 4, 2026, the court appointed Matthew D. Mason of Hilco Global as temporary receiver. Under a stipulated supplemental receivership order effective July 1, 2026, Cushman & Wakefield replaced SL Green Management Corp. as property manager (with the First Mortgage Lender’s consent).
• Separately, after the senior mezzanine loan was accelerated, related UCC foreclosure proceedings were sought by the mezzanine lender; a motion for a preliminary injunction to block a UCC sale was denied on January 27, 2026 (WWP Mezz, LLC v. WWP Mezz Investment Company LLC, Case No. 650135/2026). UCC sale(s) have been postponed and none have been consummated as of filing.

Key Details

• First Mortgage: $940,000,000 — monetary default as of December 2025.
• Senior Mezzanine: $190,000,000 — monetary default since Sept 2024; acquired Oct 29, 2025 by an Extell affiliate that accelerated the loan.
• Junior Mezzanine: $70,000,000 — currently in monetary default.
• Foreclosure action Case No. 850068/2026; temporary receiver appointed March 4, 2026; Cushman & Wakefield named property manager effective July 1, 2026.
• NYRT’s stake: NYRT holds its interest indirectly via ARC, which owns 49.9% of WWP Holdings; NYRT has no obligation to fund additional capital for the Property and is not a party to ongoing negotiations.

Why It Matters

• These are material property- and loan-level events for the One Worldwide Plaza investment that could affect the value or timing of recoveries tied to the asset. Foreclosure, receiver control, or UCC sales could change asset management, cash flow, and ultimate recoveries for equity holders.
• NYRT emphasizes it has no further capital funding obligations for the Property and is monitoring developments. However, the filing warns the outcome of the foreclosure, UCC proceedings, and negotiations among other WWP members cannot be predicted and may affect NYRT’s indirect investment value.