More than two years after the loan default on the office building 521 Fifth Avenue in Midtown Manhattan, further delays are emerging in the resolution of the property. Deutsche Bank has requested an extension of the deadline for the foreclosure sale of the 39-storey office tower near Bryant Park by an additional 90 days. This is according to a notice from the rating agency KBRA.
The request was made in agreement with borrower Savanna. It represents the fourth postponement since April 2026. In 2019, the bank provided a 242 million dollar CMBS loan that Savanna used to finance the acquisition of the 495,636 square foot property for a total purchase price of 381 million dollars. The floating-rate loan from the COMM 2019-521F SASB securitisation originally carried a two-year term and included three one-year extension options.
Sale process halted for now
Savanna and Deutsche Bank are currently marketing the building jointly. However, an open-market sale recently failed: after the property was initially offered for 265 million dollars, or 535 dollars per square foot, it was withdrawn from the market in September 2026. A prospective purchase fell through after a due diligence phase lasting several months. In June 2026, the market value of the office building had still been appraised at 270 million dollars.
The difficulties in resolving the asset also stem from weak operational performance. According to reports by the special servicer, the occupancy rate had dropped to just 67 per cent in December 2025. By comparison, the occupancy rate stood at 90 per cent in December 2020 before falling to 81 per cent at the end of 2021. Data from KBRA further indicates that around 84,440 square feet were being marketed for lease in September 2026, representing roughly 17 per cent of the total lettable area.
Price discounts in the Midtown submarket
Patrick Czupryna, Managing Director at KBRA Credit Profile, pointed out that two comparable Midtown properties within less than a mile were recently sold substantially below their previous appraised values. This trend illustrates the continuing valuation adjustments for office space in central New York locations.
- —The 303,000 square foot Berkeley Building at 19 West 44th Street, with an occupancy rate of 79 per cent, was sold in June 2026 for 108 million dollars (356 dollars per square foot) to a joint venture comprising Hamlin Ventures, Olmstead Properties and Vertex Properties.
- —The building at 260 Madison Avenue, comprising 531,270 square feet of space and with an occupancy rate of 68 per cent, was acquired by AmTrust Realty in December 2025 for 211.2 million dollars, equating to 398 dollars per square foot.
Neither Savanna nor Deutsche Bank provided an immediate statement regarding further plans for 521 Fifth Avenue when contacted for comment.
