Aby Rosen's RFR sold 522 Fifth Avenue to Amazon for an undisclosed sum. The sale comes after RFR faced foreclosure on the property last summer before SL Green purchased its debt. Amazon confirmed the purchase, stating their continuous evaluation of office space needs.
RFR acquired 522 Fifth Avenue in 2020 from Morgan Stanley. Rosen cited the building's architectural significance and the strength of the Grand Central corridor as factors in its appeal. The company has experienced financial difficulties recently, including the loss of the Chrysler Building and 285 Madison Avenue to foreclosure but also successfully completed deals like the sale of 980 Madison Avenue and a recapitalization of 475 Fifth Avenue.
Amazon purchased the Lord & Taylor building in 2020 for $1.15 billion and has since signed multiple large leases in New York City, totaling nearly 1 million square feet, indicating a need for increased office space.
Aby Rosen’s firm pulled off another deal for one of his office buildings that had been challenged.
Rosen’s RFR has sold 522 Fifth Avenue to Amazon for an undisclosed price, sources told The Real Deal.
The firm did not identify the price or the buyer in the deal, only saying it was an owner-occupier. Sources told TRD the buyer is the e-commerce giant, which has its New York headquarters nearby at the former Lord & Taylor building at 424 Fifth Avenue.
A spokesperson from Amazon confirmed the purchase, saying the company ”continuously evaluate[s] our corporate office needs to best serve Amazon’s businesses, employees, and customers.”
RFR had faced foreclosure on the 600,000-square-foot property last summer, before SL Green came in and bought the building’s $224 million debt at a hefty discount.
“We’ve always had a sharp eye for architecturally significant assets that stand the test of time,” Rosen said in a statement Friday morning announcing the sale. “This sale speaks not only to the enduring appeal of the building, but to the strength of the Grand Central corridor and the growing demand for distinctive, high-quality opportunities in New York.”
RFR acquired 522 Fifth Avenue from Morgan Stanley in 2020. Rosen’s company had been preparing plans to renovate the building, and when Morgan Stanley informed RFR it would be vacating the space the owner started marketing it as a full-building headquarters to a tenant.
Rosen has since struggled with several investments after interest rates began to climb in 2022, most notably losing the Chrysler Building in January. Last week, he lost the building at 285 Madison Avenue to foreclosure.
But he’s also put together some creative deals.
Last year, he sold 980 Madison to Bloomberg Philanthropies for $560 million, and in February, he brought 475 Fifth Avenue back from the brink of foreclosure with a $160 million recapitalization. RFR late last year negotiated a three-year extension on 17 State Street, where the company had faced foreclosure on a $180 million loan.
Amazon, meanwhile, bought the Lord & Taylor building for $1.15 billion in 2020 and transformed it into its Big Apple HQ. But the company clearly needs more space.
Jeff Bezos’ firm has signed at least three large leases since November totaling nearly 1 million square feet, including a 330,000-square-foot deal last month at 10 Bryant Park.
Read more Commercial New York RFR slapped with $224M pre-foreclosure as overdue debts pile up Commercial New York SL Green bought Aby Rosen’s 522 Fifth debt at 40% discountThis article has been updated to include context on the company’s recent deals.
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