Rosenberg & Estis leads client through pre-negotiated disposition that creates significant cost savings
NEW YORK, May 5, 2025 –Rosenberg & Estis, P.C., currently celebrating its 50th year as one of New York City’s pre-eminent real estate law firms, announced that the firm has completed the strategic $27.5 million acquisition of the office buildings located at 10 and 12 East 33rd St. in Manhattan’s Koreatown neighborhood.
Richard Y. Im, Member with the firm’s Litigation Department and Distressed Real Estate Group, represented the buyer, Han 533 LLC, an affiliate of the Han Family Office private investment group headquartered in South Korea.
The acquisition, executed at nearly half the price of the sellers’ original 2018 purchase, highlights the ongoing distress and recalibration underway in the NYC office market and how R&E’s dedicated Distressed Real Estate Group is addressing the urgent needs of lenders, borrowers, and investors as they navigate the shifting real estate landscape.
In this case, the transaction was far from a conventional real estate purchase. The properties were encumbered by a loan that had gone into default. As part of a negotiated workout between the previous owner and lender, the previous owner agreed to a transfer to a third-party buyer designated in the workout terms.
The lender facilitated the transaction by allowing Han 533 LLC to assume and modify the existing debt. By restructuring the debt together with an equity investment from the buyer, the transaction became more economical for the parties.
“This was not a typical purchase and sale or loan transaction,” said Im. “Our client was stepping into a prepackaged workout that had already been negotiated between the defaulted borrower and the lender. There was limited flexibility to negotiate a traditional purchase transaction—this was a distressed seller, and we were operating within the framework of the lender’s workout plan.”
The transaction highlights the pivotal role of an expert attorney in orchestrating complex workouts and dispositions and navigating the legal intricacies of distressed debt by utilizing various workout tools and the restructuring of existing loan documentation.
Michael E. Lefkowitz, Managing Member of Rosenberg & Estis, P.C. and a Leader of R&E’s Transactional Department, said, “Owners and lenders in the commercial real estate sector are navigating a fast-changing landscape, with more than $1.5 trillion in U.S. commercial real estate debt set to mature by the close of 2025. High interest rates, declining property valuations, and increasing operational expenses are creating significant hurdles for refinancing and portfolio restructuring. Our dedicated Distressed Real Estate Group offers strategic legal support to help clients manage the complexities of this uncertain market.”
About Rosenberg & Estis, P.C.
Founded in 1975, Rosenberg & Estis, P.C. is widely recognized as one of New York City’s pre-eminent real estate law firms. R&E provides full-service representation and advice in every aspect of real estate, from performing due diligence and evaluating financing, to handling joint ventures, acquisitions and leasing, construction and design team agreements, property tax exemptions and abatements, land use and zoning matters, Real Property Income & Expense (RPIE) filings, real estate tax certiorari, co-op and condo offering plan filings and board representation, distressed situations workouts, foreclosures and bankruptcies, trust and estate planning, as well as the litigations and negotiations which sometimes ensue when deal-making. R&E’s wealth of experience in New York real estate makes it the ideal thought partner for owners, developers, not-for-profit corporations, educational institutions, sponsors, equity investors and lenders in both real estate transactions and in all court venues.