R
ithm Capital’s planned acquisition of Paramount Group signals confidence in Manhattan’s office market, where Paramount owns most of its assets. The deal would give Rithm, a leader in commercial and residential credit and asset management, its first substantial physical real‑estate holding—13.1 million square feet of office space. Other bidders, including SL Green and Blackstone, entered the fray after Paramount quietly announced in April that it was exploring “strategic alternatives.”
If shareholders approve, Rithm may reorganize Paramount’s 11‑building Manhattan portfolio and could consider selling or upgrading certain assets. Rithm’s CEO, Michael Nierenberg, who maintains a low public profile, described the purchase as a “generational opportunity” to expand the firm’s commercial‑real‑estate platform and owner‑operator model. Analysts expect the new owner to rationalize the portfolio, investing in capital upgrades for buildings that need refurbishment.
Paramount’s holdings include the vacant 60 Wall St tower, which the company and its institutional partners are investing $250 million to modernize. Other notable properties—900 Third Ave and 31 West 52nd St—have seen limited upgrades beyond lobby improvements. The tower has attracted interest from firms such as Sullivan & Cromwell, Moody’s, and Aon, though no leases have been signed yet. Paramount’s Manhattan assets are 88.1 % leased, the highest since early 2022, excluding the 1.6 million square‑foot vacancy at 60 Wall St. The company’s equity stake in that tower is only 5 %.
Other publicly traded REITs, like SL Green, report higher occupancy rates and asking rents than Paramount. Shareholders have questioned the $1.6 billion purchase price—$6.60 per share—as undervalued. The SEC is reportedly investigating payments to Paramount CEO Alfred Behler, a matter that could affect the sale if Rithm assumes liabilities.
Founded by Fortress in 2013 and fully self‑managed since 2022, Rithm claims over $100 billion in investable assets. The firm’s recent milestone includes an 11,321‑square‑foot lease with BAM Labs that brought L&L Holding Company’s reconfigured 150 Fifth Ave to 100 % office and retail occupancy. The building, now fully leased, hosts Mastercard’s 227,500‑square‑foot office space.
Meanwhile, 1515 Broadway—once the subject of a rejected casino bid—remains a viable development. Its office portion is fully leased through 2031 to Paramount Global (formerly Viacom), which will continue paying rent even if it downsizes. A $742 million mortgage on the tower was recently extended to 2028, and the Minskoff Theatre inside continues to draw crowds for “The Lion King.”
