Rithm Capital, led by Michael Nierenberg, has gained a new capital partner. The company has formed a joint venture with DRA Advisors to own and operate the office tower 1301 Avenue of the Americas. DRA Advisors is taking a 49% stake in the property, which sources familiar with the deal state is valued at USD 1.3 billion. This transaction was first reported by Commercial Observer.
The 45-storey office tower, spanning 1.7 million square feet, is managed by Elecor Properties, a subsidiary of Rithm Capital. Rithm Capital retains a majority stake of 51% and will continue to operate the building through Elecor Properties. Elecor Properties, formerly Paramount Group, was acquired by Rithm Capital in December 2025.
Market Confidence in Manhattan
A Newmark team, comprising Adam Doneger, Adam Spies, and Ben Lushing, arranged the transaction. Doneger stated that DRA's investment alongside Rithm reflects strong conviction in the 1301 Avenue of the Americas property, as well as in the broader New York office market. Nierenberg, CEO of Rithm Capital, emphasised in a statement the shared conviction of both firms regarding the long-term value of high-quality office properties.
The 1301 Avenue of the Americas property is testament to the robust demand in the New York office market. Nierenberg noted that the partnership with an experienced, well-capitalised firm like DRA allows Rithm to further expand its asset management platform while remaining closely involved in the long-term success of the asset.
Significant Location and Tenant Structure
The building, located in the heart of Midtown Manhattan at the corner of Sixth Avenue and West 53rd Street, opened in 1964 and was previously known as the Crédit Lyonnais Building and J.C. Penney Building. The property is fully leased and houses tenants such as KeyBank, Piper Sandler, Crédit Agricole, and O'Melveny & Myers.
Brett Gottlieb, Senior Managing Director at DRA Advisors, described 1301 Avenue of the Americas as a prime asset in one of the strongest office markets in the country. He added that Rithm has built an impressive platform and they look forward to combining their respective strengths at 1301 Avenue of the Americas and expanding the partnership from this point forward.
Last year, Rithm Capital, an alternative investment firm and publicly traded mortgage REIT, acquired the entire office portfolio of Paramount Group for USD 1.7 billion and rebranded the company as Elecor Properties in April 2026.
- —745 Fifth Avenue in New York City
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- —31 West 52nd Street in New York City
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