Key Takeaways
- • Rithm Capital has formed a joint venture with DRA Advisors to co-own 1301 Avenue of the Americas, a fully leased 45-story, 1.7 million-square-foot Class A office tower in Midtown Manhattan, with Rithm retaining majority ownership through its Elecor Properties operating platform.
- • The property generates income from anchor tenants including KeyBank, Piper Sandler, Crédit Agricole, and O'Melveny & Myers LLP, and features The Aurelian, a 32,000-square-foot private club with dining and wellness amenities.
- • Financial terms of DRA's investment were not disclosed, but the transaction represents Rithm's strategic pivot to bring institutional capital into select trophy assets acquired through Elecor's December 2025 acquisition.
- • Rithm will continue operating the building on behalf of the joint venture, maintaining operational control while leveraging DRA's institutional capital partnership to optimize long-term asset value.
Summary
Rithm Capital Corp. and a fund managed by DRA Advisors LLC have established a joint venture for ownership of 1301 Avenue of the Americas, a flagship 45-story office tower in Midtown Manhattan. Rithm retains majority ownership of the property through Elecor Properties, its real estate operating platform, while DRA contributes institutional capital as a minority partner. The financial terms of DRA's investment were not disclosed.
The 1.7 million-square-foot Class A property is fully leased to prominent tenants spanning financial services, professional services, and banking sectors. KeyBank, Piper Sandler, Crédit Agricole, and law firm O'Melveny & Myers LLP anchor the tenant roster. The building also houses The Aurelian, a recently renovated 32,000-square-foot private club offering restaurant and dining facilities, private meeting rooms, a fireside lounge, café, game room, auditorium, and wellness amenities.
This joint venture follows Rithm's December 2025 acquisition of Elecor and its portfolio of Class A office properties across New York and San Francisco—a strategic move that established Rithm as a direct operator and manager of large-scale office assets rather than a passive investor. Since closing the Elecor transaction, Rithm has deployed additional capital for property improvements and expanded its asset management capabilities. The DRA partnership represents the next phase of this strategy, enabling Rithm to bring outside institutional investors into select high-quality assets while maintaining operational control.
Michael Nierenberg, CEO of Rithm Capital, characterized the partnership as reflecting "shared conviction in the long-term value of high-quality office assets." Elecor Properties will continue managing the building on behalf of the joint venture, ensuring continuity in operations and tenant relations while benefiting from DRA's institutional capital commitment and expertise.
The 1.7 million-square-foot Class A property is fully leased to prominent tenants spanning financial services, professional services, and banking sectors. KeyBank, Piper Sandler, Crédit Agricole, and law firm O'Melveny & Myers LLP anchor the tenant roster. The building also houses The Aurelian, a recently renovated 32,000-square-foot private club offering restaurant and dining facilities, private meeting rooms, a fireside lounge, café, game room, auditorium, and wellness amenities.
This joint venture follows Rithm's December 2025 acquisition of Elecor and its portfolio of Class A office properties across New York and San Francisco—a strategic move that established Rithm as a direct operator and manager of large-scale office assets rather than a passive investor. Since closing the Elecor transaction, Rithm has deployed additional capital for property improvements and expanded its asset management capabilities. The DRA partnership represents the next phase of this strategy, enabling Rithm to bring outside institutional investors into select high-quality assets while maintaining operational control.
Michael Nierenberg, CEO of Rithm Capital, characterized the partnership as reflecting "shared conviction in the long-term value of high-quality office assets." Elecor Properties will continue managing the building on behalf of the joint venture, ensuring continuity in operations and tenant relations while benefiting from DRA's institutional capital commitment and expertise.
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