Key Takeaways
- • Rithm Capital Corp. closed a joint venture with a fund managed by DRA Advisors LLC for ownership of 1301 Avenue of the Americas in Midtown Manhattan, one of the flagship properties in the New York City office portfolio of Elecor Properties.
- • Rithm, through its real estate operating platform Elecor Properties, will retain majority ownership of the property and continue operating the building on behalf of the joint venture.
- • Rithm's Jonny Nierenberg, vice president at Rithm Capital Corp., cited credit tenants, long weighted average lease term (WALT), and the Aurelian amenity as attributes attracting institutional capital to class A office assets.
- • The transaction signals that institutional capital is selectively targeting New York office assets with strong leasing fundamentals and income potential, rather than the sector broadly.
Summary
Rithm Capital Corp. has closed a joint venture with a fund managed by DRA Advisors LLC for the ownership of 1301 Avenue of the Americas, according to Institutional Real Estate, Inc. The property is one of the flagship assets in the New York City office portfolio of Elecor Properties, Rithm's real estate operating platform. Under the arrangement, Rithm, through Elecor, will retain majority ownership and continue to operate the building on behalf of the joint venture.
Rithm's Jonny Nierenberg, vice president at Rithm Capital Corp., said the partnership demonstrates that capital is available for high-quality class A assets "that check every box in today's market." He pointed to credit tenants, a long weighted average lease term (WALT), a best-in-class amenity in The Aurelian, and a prime Midtown location as the key attributes behind the investment.
The transaction also reflects DRA's confidence in Elecor's ability to own and operate the property, the publication reported. The deal underscores a broader theme in the market: institutional investors are being selective, concentrating on New York office assets with strong leasing fundamentals and income potential instead of committing to the sector as a whole. The source article was truncated, so transaction value and additional terms were not available in the reporting reviewed.
Rithm's Jonny Nierenberg, vice president at Rithm Capital Corp., said the partnership demonstrates that capital is available for high-quality class A assets "that check every box in today's market." He pointed to credit tenants, a long weighted average lease term (WALT), a best-in-class amenity in The Aurelian, and a prime Midtown location as the key attributes behind the investment.
The transaction also reflects DRA's confidence in Elecor's ability to own and operate the property, the publication reported. The deal underscores a broader theme in the market: institutional investors are being selective, concentrating on New York office assets with strong leasing fundamentals and income potential instead of committing to the sector as a whole. The source article was truncated, so transaction value and additional terms were not available in the reporting reviewed.
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