Rithm Brings DRA Advisors Into 1301 Avenue of the Americas

Rithm Capital has closed a joint venture with a fund managed by DRA Advisors on 1301 Avenue of the Americas, the 45-story Midtown office tower that is one of the flagship assets of its Elecor Properties platform, IREI reported on Oct. 2.

Why it matters

Rithm keeps majority ownership and will keep operating the building for the venture, per the announcement, so this is a partial sale of equity in a trophy tower and not a handoff. No price, valuation or stake size was disclosed, and we found no outlet that reports one, so any implied value for the tower is not something the record supports yet. Rithm bought Paramount Group, the office landlord that owned this tower, in December for about $1.6 billion and rebranded it Elecor; bringing in an outside fund this soon suggests Rithm wants a partner’s capital in the largest assets it inherited. Rithm CEO Michael Nierenberg said in the release that “strong leasing activity across New York City’s leading office assets continues to reinforce demand for best-in-class space.”

The numbers

IREI describes the tower as 1.7 million square feet and fully leased; Paramount’s 2016 SEC filing called it 1.8 million square feet, so the exact figure depends on the source. That filing also records an $850 million financing in 2016, and Paramount’s March 2025 quarterly report listed an $860 million loan maturing August 2026, a figure we could not re-confirm from the deed record. Our ACRIS pull shows what happened to the debt on paper: two mortgage assignments recorded Nov. 3, 2025, from Morgan Stanley Bank to Morgan Stanley Mortgage Capital Holdings, then to Deutsche Bank National Trust Company as trustee. The tax-roll owner is 1301 Properties Owner LP, and no deed is in the digitized record because the venture is an entity-level deal.

What’s next

Watch ACRIS for a new mortgage, a satisfaction or an amended agreement on block 1005, lot 29, which would show how the venture is financed and whether the August 2026 maturity was refinanced. The percentage DRA holds and the price paid remain undisclosed. For more New York coverage, see the New York market page.