Korean lenders and Ocean West Capital Partners foreclose on 285 Madison Ave.

Manhattan, NY Ocean West Capital Partners (Ocean West) led the UCC foreclosure of 285 Madison Ave., a 511,000 s/f office property located in Midtown near Grand Central Terminal. Ocean West represented the mezzanine lender, which was comprised of a consortium of some of the largest insurance companies in South Korea.

DLA Piper LLP represented the mezzanine lender throughout the process and was instrumental in formulating and executing the foreclosure strategy. Newmark managed the UCC auction marketing process, and Daol Asset Management served as the Korean investment advisor for this transaction.

While the property remains well leased and in one of the top performing submarkets in the U.S., the loan fell into maturity default in late 2022. Originally the loan was extended to provide time for recovery, but it came back into default in late 2024 when the extension expired. Ocean West was brought in at this time to serve as advisor to the Korea-based mezzanine lender and evaluate various debt recovery strategies.

With Manhattan office leasing trends improving and increased investment activity in the market, the mezzanine lender concluded that its strongest course of action was to exercise its foreclosure rights and invest new capital to take control of the property. Ocean West will remain involved throughout the investment hold period to oversee the asset.

“We believe that the quality of the building, the vibrancy of the market, and our cost basis will provide a strong opportunity to enhance cash flows and create value over time,” said Ryan Tucker, principal at Ocean West. The property boasts a desirable Madison Ave. address just one block from Grand Central Terminal, and during a recent renovation, over $80 million was invested in the property to fully modernize the building and enhance the amenity program, which includes a rooftop deck and event space, conferencing center, and onsite gym.

The acquisition of 285 Madison through UCC foreclosure is part of more than $2 billion of New York City assets upon which Ocean West has either acquired or advised upon for Korean institutional investors in the past 12 months.  “We have seen a change in tenor from the Korean lending community whereby they have become more aggressive in protecting assets located in strong markets. These investors represent some of the largest insurance companies and pension funds in the world, who have capital to execute a wide variety of strategies”, said Phil Choi, principal and co-founder of Ocean West.