Deutsche Bank and Savanna push off foreclosure sale for 521 Fifth Avenue
Deutsche Bank delayed a foreclosure sale for 521 Fifth Avenue yet again.
The short version
- The $242 million loan defaulted over two years ago.
- Occupancy at the Midtown office tower has dropped to 67 percent.
- Real estate values are sliding as nearby towers trade at steep discounts.
Deutsche Bank, the huge German multinational bank, is giving a Manhattan office tower more breathing room. According to Commercial Observer, Deutsche Bank and Savanna, a New York real estate private equity firm, just pushed off the foreclosure sale for 521 Fifth Avenue for another 90 days.
It is the fourth extension since April 2026 for the 39-story tower near Bryant Park. Deutsche Bank supplied a $242 million loan in 2019 when Savanna bought the 495,636-square-foot building for $381 million. The loan defaulted more than two years ago, and the tower was taken off the market in September 2026 after a potential sale fell through.
A June 2026 appraisal valued the property at $270 million, down sharply from the purchase price. Leasing occupancy sits at 67 percent, falling from 90 percent in 2020. Patrick Czupryna, a managing director at KBRA Credit Profile, which provides credit ratings and research, noted that nearby Midtown buildings are selling for well below appraised values.
The Berkeley Building at 19 West 44th Street sold for $108 million, and 260 Madison Avenue traded for $211.2 million. Both deals closed at deep discounts per square foot. Deutsche Bank did not return requests for comment, and Savanna declined to comment. When office towers struggle to fill desks, even the biggest banks prefer waiting over pulling the plug.
