DRA Advisors Buys 49% Stake in 1301 Avenue of the Americas – Commercial Observer
Michael Nierenberg’s Rithm Capital has a new capital partner.
Rithm Capital has formed a joint venture with DRA Advisors to own and operate 1301 Avenue of the Americas.
Commercial Observer can first report that DRA is taking a 49 percent stake in the property, which is currently valued at $1.3 billion, according to sources close to the deal.
The 45-story, 1.7 million-square-foot office tower is managed by Elecor Properties, a subsidiary of Rithm Capital. Rithm Capital will maintain a 51 percent majority stake and operate the building through Elecor Properties, formerly Paramount Group, which it acquired in December 2025.
A Newmark team of Adam Doneger, Adam Spies and Ben Lushing arranged the transaction, sources said.
“DRA’s investment alongside Rithm reflects strong conviction in both 1301 Avenue of the Americas and the broader New York City office market,” said Doneger in a statement.
Located in the heart of Midtown Manhattan, off on the corner of Sixth Avenue and West 53rd Street, 1301 Avenue of the Americas opened in 1964 and had been known as the Crédit Lyonnais Building and the J.C. Penney Building. The asset is fully leased and includes tenants KeyBank, Piper Sandler, Crédit Agricole and O’Melveny & Myers.
Nierenberg, CEO of Rithm Capital, said in a statement that his firm and DRA both hold a “shared conviction in the long-term value of high-quality office assets,” and that 1301 Avenue of the Americas is representative of the strong demand of the broader New York City office market.
“Partnering with an experienced, well-capitalized firm like DRA allows us to continue growing Rithm’s asset management platform while staying closely involved in the asset’s long-term success,” he added.
Brett Gottlieb, senior managing director at DRA Advisors, called 1301 Avenue of the Americas “a premier asset in one of the country’s strongest office markets,” in a statement.
“What Rithm has built is incredibly exciting, and we look forward to combining our respective strengths at 1301 and growing the partnership from here,” he added.
Last year, Rithm Capital, an alternatives firm and publicly traded mortgage REIT, acquired Paramount Group’s entire office profile for $1.7 billion, and rebranded the firm as Elecor Properties in April 2026.
The Elecor office portfolio includes 745 Fifth Avenue, 900 Third Avenue, 31 West 52nd Street in New York City and One Market Plaza and 300 Mission Street in San Francisco.
Brian Pascus can be reached at bpascus@commercialobserver.com.
