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by Rosen and his company RFR Holding are facing a potential eviction from their Soho luxury hotel, 11 Howard. The hotel's landlord, Commerz Real, has filed a lawsuit claiming RFR owes over $18 million in back rent, taxes, insurance, and other costs. This is one of three separate lawsuits between the parties, with RFR alleging that Commerz violated its lease agreement by shopping the property to potential buyers without giving them first right of offer.
RFR bought the hotel for $89.7 million in 2014 and spent tens of millions renovating it before opening in 2016. However, a week after opening, Commerz purchased the hotel from RFR with an agreement to lease it back for 10 years, giving RFR options to extend or buy the building back. If RFR exercises its repurchase option, Commerz's investment would essentially become a loan.
Commerz claims RFR racked up $18.1 million in unpaid rent and related costs by January, prompting a 15-day lease termination notice on February 11. In this latest lawsuit, Commerz is seeking to collect the money, including $2.8 million in real estate taxes that Rosen and Fuchs jointly guaranteed.
This is not the only challenge facing RFR's Aby Rosen, who also lost a battle over the Chrysler Building earlier this year. However, RFR has recently closed on a $1.2 billion loan to refinance the Seagram Building at 375 Park Avenue and recapitalized 475 Fifth Avenue in Midtown Manhattan after facing foreclosure threats from its lenders.
