Weekly Real Estate News
Summary
Rithm Capital added DRA Advisors as an institutional partner in 1301 Avenue of the Americas while retaining majority ownership and operating control through Elecor Properties.
Rithm Capital has brought DRA Advisors into the ownership of 1301 Avenue of the Americas, forming a joint venture around one of the major New York office properties Rithm acquired through its purchase of Paramount Group.
Rithm announced the closing Oct. 2. A fund managed by DRA Advisors is the new institutional partner, while Rithm, through its Elecor Properties operating platform, will retain majority ownership and continue operating the building. Financial terms and the partners’ precise ownership percentages were not disclosed.
The lack of disclosed pricing limits what can responsibly be inferred about the building’s current valuation. The transaction does, however, provide another indication that institutional capital is selectively returning to high-quality office properties rather than treating the sector as a single distressed asset class.
Rithm is building on the former Paramount portfolio
Rithm acquired Paramount Group in December 2025, gaining a portfolio of Class A office buildings in New York and San Francisco. The platform has since been rebranded as Elecor Properties.
Rithm said it has invested in capital improvements across the portfolio and expanded its asset-management infrastructure. The DRA partnership advances that strategy by adding outside institutional capital while leaving Rithm in control of the asset’s operation.
Chief Executive Michael Nierenberg said strong leasing activity at leading New York office properties is reinforcing demand for top-tier space. That distinction is central to the office recovery story: leasing and capital flows have increasingly favored newer, renovated or otherwise differentiated buildings, while weaker properties can remain under pressure.
Office recovery remains highly selective
The transaction should not be read as evidence that office distress has disappeared. Elevated refinancing costs, large capital requirements and uneven occupancy continue to challenge many buildings. But joint ventures involving established institutional managers can provide owners with fresh equity, spread risk and create capital for improvements without requiring an outright sale.
Rithm’s broader business also makes the deal notable for housing-finance professionals. The company spans mortgage servicing rights, residential and commercial real estate lending, structured credit and asset management through businesses including Newrez, Genesis Capital, Sculptor and Elecor.
The DRA transaction therefore fits a larger shift at Rithm from its roots as a mortgage-focused investment company toward a diversified alternative-asset manager with direct operating platforms.
For 1301 Avenue of the Americas, the next useful markers will be leasing, capital investment and any later disclosure that establishes the venture’s valuation or DRA’s ownership stake. Until then, the verified development is narrower: DRA has joined the ownership group, Rithm remains the majority owner, Elecor continues to operate the property, and the parties have chosen not to disclose the economics.
