Rithm Capital Secures $282.5M Refinancing for Midtown Manhattan Office Tower Following Acquisition

Rithm Capital has locked in a $282.5 million CMBS refinancing package for a prominent Midtown Manhattan office tower, marking the firm’s inaugural capital markets maneuver since taking over Paramount Group. The deal provides fresh liquidity for one of New York’s premier corporate addresses and offers a window into how top-tier urban office properties are faring in today’s volatile lending environment.

According to Bisnow, the financing represents Rithm’s first significant transaction since it completed its acquisition of Paramount Group. The single-asset CMBS loan was secured for the 34-story, Class-A office building located at 1325 Sixth Ave., which currently maintains a strong occupancy profile anchored by established office and hospitality tenants.

Key Details

• Borrower: Rithm Capital, acting through its newly acquired Paramount Group platform
• Lender/Structure: $282.5 million single-asset, single-borrower (SASB) CMBS issuance
• Property: 1325 Sixth Ave., an 825,000 square foot, 34-story Class-A office tower in Manhattan’s Midtown submarket (built 1989)
• Tenancy: 89.7% leased as of January; anchor tenants include McGraw Hill (136K SF, 18.1% of base rent), NY Hilton Midtown, Olshan Frome Wolosky, MLB Players Association, and Nikkei
• Timeline: The refinancing closed in late 2024, shortly after Rithm finalized its purchase of Paramount Group’s external management rights
• Use of Proceeds: Recapitalization and replacement of legacy debt on the asset

Market Context

The successful placement of a $282.5 million securitized loan on a single Manhattan office tower is a notable data point for commercial real estate professionals watching the capital markets recovery. For context, CMBS issuance volume across all property types reached approximately $78 billion in 2023, but office-backed issuance represented a historically small fraction of that total due to well-documented concerns about remote work, rising vacancies, and refinancing risk.

This transaction illustrates a bifurcation in the market: lenders and bond investors appear willing to finance office properties with strong sponsorship, durable tenant rosters, and locations in supply-constrained urban cores.

For CRE professionals, Rithm’s move signals that well-capitalized investors are actively refinancing and stabilizing their office portfolios rather than surrendering assets to distress. The SASB CMBS structure, which allows for larger, more transparent single-asset deals, has become a preferred vehicle for institutional-grade properties, replacing the older conduit model that pooled hundreds of smaller loans.

The transaction also raises questions about Rithm’s broader strategy for the Paramount portfolio. Observers will be watching whether additional refinancings or asset sales follow as the new owner looks to optimize the portfolio in a challenging but opportunity-rich cycle for urban office real estate.