Rithm Capital Corp. has formed a new joint venture with a fund managed by DRA Advisors LLC to hold 1301 Avenue of the Americas, a major Midtown Manhattan office tower. The transaction centers on one of the flagship assets in the New York City office portfolio of Elecor Properties, which serves as Rithm’s real estate operating platform. While specific financial terms of the venture were not disclosed, the structure keeps Rithm in a lead position at the property.
Under the joint venture, Rithm, through Elecor, will retain majority ownership of 1301 Avenue of the Americas and continue to operate the asset on behalf of the partnership. The arrangement aligns the institutional capital of DRA Advisors with Rithm’s existing operational control and experience at the building, while giving both parties exposure to a large, fully leased office tower in a core Midtown location.
Rithm CEO Michael Nierenberg said that leasing performance at top-tier New York City office properties remains solid, adding that interest in high-quality space continues to support demand at leading assets. He noted that teaming with an experienced, well-capitalized partner such as DRA Advisors provides Rithm with an opportunity to expand its asset management platform while remaining closely engaged in the long-term performance of 1301 Avenue of the Americas.
The property is described as a 45-story, 1.7-million-square-foot office tower in Midtown Manhattan and is currently fully leased. Its status as a flagship holding within Elecor’s New York City office portfolio underscores its importance within Rithm’s broader operating platform. Continued full occupancy at such a large asset highlights the resilience of demand for well-located, high-caliber office space in the city’s core business districts.
Newmark Group acted as the exclusive real estate advisor to Rithm Capital Corp. in connection with the joint venture, providing strategic guidance on the transaction and structure. HSF Kramer served as legal counsel to Rithm, advising on the legal aspects of the JV and ownership framework for the tower. The parties did not disclose any valuation metrics, capital commitments, or additional transaction details associated with the new partnership.
