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Rithm Capital Corp.<\/a> has formed a joint venture with a fund managed by DRA Advisors LLC for ownership of 1301 Avenue of the Americas<\/a>, bringing institutional capital into one of the flagship properties in Rithm\u2019s New York City office portfolio.<\/p>\n 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.<\/p>\n Financial terms of DRA\u2019s investment were not disclosed.<\/p>\n The transaction represents a capital partnership around a fully leased, 1.7 million-square-foot Class A office property and advances Rithm\u2019s strategy of bringing outside institutional investors into select assets acquired through Elecor.<\/p>\n Located on Avenue of the Americas in Midtown Manhattan, 1301 is leased to tenants including KeyBank, Piper Sandler, Cr\u00e9dit Agricole and O\u2019Melveny & 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, caf\u00e9, game room, auditorium and wellness facilities.<\/p>\n \u201cWe are excited to begin our partnership with DRA, which reflects our shared conviction in the long-term value of high-quality office assets,\u201d Rithm Capital CEO Michael Nierenberg said.<\/p>\n The joint venture follows Rithm\u2019s 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.<\/p>\n Since completing the Elecor transaction, Rithm has deployed additional capital into improvements across the portfolio and expanded its asset management capabilities.<\/p>\n The DRA partnership provides another component to that strategy. Rather than selling 1301 Avenue of the Americas<\/a> outright, Rithm is retaining control and operational responsibility while bringing another institutional investor into the ownership structure.<\/p>\n 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.<\/p>\n \u201cStrong leasing activity across New York City\u2019s leading office assets continues to reinforce demand for best-in-class space,\u201d Nierenberg said, adding that the DRA partnership allows Rithm to continue expanding its asset management platform while remaining involved in the property\u2019s long-term performance.<\/p>\n 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.<\/p>\n 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.<\/p>\n \u201cWe are pleased to invest alongside Rithm in 1301 Avenue of the Americas, a<\/a> premier asset in one of the country\u2019s strongest office markets,\u201d DRA Senior Managing Director Brett Gottlieb said.<\/p>\n The investment comes as the performance of the office sector has become increasingly divided by asset quality, location and leasing characteristics. Rithm\u2019s strategy with Elecor is concentrated on high-quality Class A properties in major markets, with 1301 Avenue of the Americas<\/a> representing one of the portfolio\u2019s core New York assets.<\/p>\n 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\u2019s positioning within the competitive Midtown office market.<\/p>\n Newmark Executive Vice Chairman Adam Doneger said the transaction reflects institutional interest in premier New York office properties amid continued leasing and investment activity.<\/p>\n 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.<\/p>\n