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lackstone has abandoned its foreclosure case against RFR Holding on an Upper East Side retail site and sold the $10.5 million loan to Meadow Partners. The loan is secured by two properties, 404 East 76th Street and 1460 First Avenue, which feature a mix of retail, office, residential, and garage spaces.

    RFR has faced foreclosure issues in recent months, including the seizure of 285 Madison Avenue by Daol Asset Management and a foreclosure suit against co-founder Michael Fuchs. The company's financial struggles are attributed to debt service expenses that have crippled its cash flow.

    The properties backing the loan span 27,000 square feet of built space and include over 10,000 square feet of additional air rights. Meadow Partners acquired the loan after Blackstone filed a pre-foreclosure action in November, alleging RFR was in default on a 2015 loan originated by Signature Bank. The foreclosure case was discontinued in May, and the loan sale to Meadow closed in early June.

    It is unclear why Meadow decided to acquire the loan or whether it can try to resume the foreclosure case against RFR. Meadow has been active in the market, recently entering into contract to buy 200 Lafayette Street from Brookfield for $40 million.