Rithm Capital and DRA Form Joint Venture for Midtown Manhattan Office Tower

Rithm Capital Corp. has formed a joint venture with a fund managed by DRA Advisors LLC for ownership of 1301 Avenue of the Americas, bringing institutional capital into one of the flagship properties in Rithm’s New York City office portfolio.

Rithm will retain majority ownership of the 45-story Midtown Manhattan office tower through Elecor Properties, its real estate operating platform. Elecor will also continue operating the building on behalf of the joint venture.

Financial terms of DRA’s investment were not disclosed.

The transaction represents a capital partnership around a fully leased, 1.7 million-square-foot Class A office property and advances Rithm’s strategy of bringing outside institutional investors into select assets acquired through Elecor.

Located on Avenue of the Americas in Midtown Manhattan, 1301 is leased to tenants including KeyBank, Piper Sandler, Crédit Agricole and O’Melveny & Myers LLP. The property also features The Aurelian, a recently renovated 32,000-square-foot private club with a restaurant, private dining rooms, fireside lounge, café, game room, auditorium and wellness facilities.

“We are excited to begin our partnership with DRA, which reflects our shared conviction in the long-term value of high-quality office assets,” Rithm Capital CEO Michael Nierenberg said.

The joint venture follows Rithm’s acquisition of Elecor and its portfolio of Class A office properties in New York and San Francisco in December 2025. The acquisition gave the alternative asset manager a direct operating platform through which to invest in and manage large office properties.

Since completing the Elecor transaction, Rithm has deployed additional capital into improvements across the portfolio and expanded its asset management capabilities.

The DRA partnership provides another component to that strategy. Rather than selling 1301 Avenue of the Americas outright, Rithm is retaining control and operational responsibility while bringing another institutional investor into the ownership structure.

Rithm said it intends to pursue similar capital partnerships elsewhere in the Elecor portfolio, potentially allowing the company to broaden its third-party asset management activities while retaining exposure to individual properties.

“Strong leasing activity across New York City’s leading office assets continues to reinforce demand for best-in-class space,” Nierenberg said, adding that the DRA partnership allows Rithm to continue expanding its asset management platform while remaining involved in the property’s long-term performance.

DRA brings substantial institutional real estate investment experience to the venture. The New York-based investment manager has acquired approximately $45 billion of real estate since its founding in 1986, including 66 million square feet of office properties.

As of June 30, 2026, DRA reported $13.8 billion in gross assets under management. Its investor base includes pension funds, university endowments, sovereign wealth funds, foundations and insurance companies.

“We are pleased to invest alongside Rithm in 1301 Avenue of the Americas, a premier asset in one of the country’s strongest office markets,” DRA Senior Managing Director Brett Gottlieb said.

The investment comes as the performance of the office sector has become increasingly divided by asset quality, location and leasing characteristics. Rithm’s strategy with Elecor is concentrated on high-quality Class A properties in major markets, with 1301 Avenue of the Americas representing one of the portfolio’s core New York assets.

Its full occupancy and established tenant roster provide the joint venture with an operating property rather than a lease-up or redevelopment investment. Recent amenity improvements, including The Aurelian, are part of the building’s positioning within the competitive Midtown office market.

Newmark Executive Vice Chairman Adam Doneger said the transaction reflects institutional interest in premier New York office properties amid continued leasing and investment activity.

For Rithm, the partnership also demonstrates how the Elecor acquisition can support a broader asset management strategy. The company operates across credit and real estate through businesses including Elecor Properties, Newrez, Genesis Capital, Sculptor Capital Management and Crestline Investors.

Newmark Group served as exclusive real estate advisor to Rithm on the 1301 Avenue of the Americas transaction, while HSF Kramer provided legal counsel.

With DRA now invested alongside Rithm, the property becomes an early example of the capital partnership model Rithm plans to pursue across Elecor’s portfolio: retaining operating control and meaningful ownership while bringing institutional investors into individual high-quality office assets.