On March 18, 2026, an entity tied to the office portion of 609 Fifth Avenue rushed into federal bankruptcy court in Manhattan and filed for Chapter 11, putting an immediate hold on a UCC foreclosure auction that had been scheduled for the very next morning. The move shields the developers' stake in the property while creditors and the building’s owners sort through a dense web of loans, lawsuits and repair claims.
UCC sale was set for March 19
A public UCC sale notice had set a March 19, 2026, 10 a.m. auction to sell 100% of the membership interests in 609 Fifth Partners LLC and laid out bidding procedures and deposit requirements. The notice, posted by DailyDAC, said Hilco Real Estate would conduct the sale and reserved the right to adjourn or cancel it.
Bankruptcy petition filed in SDNY
Officials tied to Top Rock Holdings and partner RJ Capital moved the office unit into Chapter 11 on March 18, filing in the U.S. Bankruptcy Court for the Southern District of New York under case No. 26-10579, according to reporting by PincusCo. The petition is aimed squarely at halting the UCC process and giving the debtor breathing room to negotiate with secured creditors and any mezzanine holders.
Conversion plans and the building’s history
The office portion at 609 Fifth, the former WeWork slab, was bought from SL Green in 2022 as part of a roughly $100 million deal and has sat largely empty since WeWork vacated in 2021. Owners filed plans to convert and substantially enlarge the 14-story commercial structure into a taller mixed-use building with dozens of luxury units, and renderings and permit materials tie the proposal to designs linked to Rafael Viñoly. CityRealty reviewed the filings and images.
The financing snag
The buyers financed the 2022 purchase with an acquisition loan from Valley National Bank of roughly $80 million, according to PincusCo. The UCC sale notice shows the office unit is encumbered by senior debt of about $71.8 million, per the DailyDAC posting, while the mezzanine lender and its claim amount remain opaque. That financing squeeze, layered on top of carrying costs, has left the condo conversion plans stuck in limbo as creditors push to get repaid.
Retail tenant, water damage and a lawsuit
The building’s retail condo, long anchored by Puma’s multilevel flagship, was temporarily closed in mid-February after water damage from burst pipes, as reported by CityRealty. The lower-unit owner filed suit on March 2, 2026, alleging the upstairs owner failed to pay steam and water charges that left the building without heat and led to multiple pipe bursts. The court summons lists steam arrears of $467,565.84 and water arrears of $212,438.10. See NYSCEF (Index No. 651248/2026) for the filing.
What Chapter 11 buys them
The Chapter 11 petition pegs assets between $50 million and $100 million and liabilities between $10 million and $50 million, and it instantly triggered an automatic stay that halts creditor collection efforts and foreclosure sales. “When a process turns value-destructive, Chapter 11 gives the borrower the ability to reset,” attorney Leo Jacobs said in an interview with The Real Deal.
For now, the filing buys the owners time to try to refinance, rework the condo conversion or negotiate a sale. Creditors and the bankruptcy court will dictate the timetable for hearings and any sale process, while Midtown watchers wait to see whether this troubled project finally gets built or passes to a new buyer.
