Rithm Capital Refinances Midtown Office With $500M Debt

Rithm Capital has arranged $500M of new financing for a Midtown Manhattan office tower it acquired through its purchase of Paramount Group, per Bisnow. The package combines a $415M CMBS loan with $85M of mezzanine debt for 31 W. 52nd St., one of the firm’s largest refinancing efforts since completing the $1.6B acquisition in December 2025. According to Fitch Ratings, the financing is expected to close on July 15 and demonstrates continued lender interest in high-quality Manhattan office assets.

Paramount Acquisition Drives Refinancing Activity

Rithm inherited 31 W. 52nd St. through its acquisition of Paramount Group, then moved quickly to restructure the property’s debt. The refinancing follows another major transaction completed in April, when the company refinanced 1325 Sixth Ave. for $283M. Together, the deals show Rithm’s strategy of repositioning inherited office assets with updated capital structures instead of relying on legacy financing. The effort also comes as institutional lenders become more selective, concentrating capital on well-located, Class A buildings with stable occupancy.

The Details

The financing package includes a $415M CMBS loan originated by Wells Fargo Bank, Bank of America, Barclays, Citi Real Estate Funding and Goldman Sachs Bank. An additional $85M of mezzanine debt brings total financing to $500M, replacing the tower’s previous mortgage. Elecor Properties, Rithm’s office subsidiary, contributed $72.5M of fresh equity to complete the transaction. Fitch Ratings said the loan carries a fixed 6.85% interest rate and matures in December 2029. The company also plans to reserve $42.9M for tenant improvements and leasing commissions to support future leasing activity.

Manhattan Office Recovery Supports Refinancing

The 29-story property is 86.5% leased, according to Fitch Ratings. Occupancy received a boost after Cushman & Wakefield signed a 134K SF lease during the summer of 2025. The building still faces a notable rollover event, however. Roughly 41% of its leases expire in 2030, representing $19.2M in annual base rent. Current tenants pay an average of $81 PSF, well below nearby asking rents of about $108 PSF, giving ownership room to capture higher rents through renewals or new leasing. Fitch also noted that slower office construction has limited new competition for premium Manhattan properties.

Why It Matters

The refinancing illustrates how capital continues flowing toward top-performing office buildings even as financing remains challenging across much of the sector. Trophy and Class A assets in core Manhattan locations have benefited from stronger tenant demand and tighter supply than lower-quality buildings. According to Colliers, tenants signed 22.8M SF of Manhattan office leases during the first half of 2026, the strongest first-half leasing volume since 2002. That momentum is helping lenders underwrite refinancing opportunities that would have been difficult only a few years ago.

What’s Next

The financing is scheduled to close in mid-July, after which Rithm will focus on deploying its leasing reserve to retain existing tenants and attract new ones. Lease renewals will become increasingly important as major expirations approach later in the decade, including agreements with several large office tenants that hold extension options. If Manhattan leasing activity remains strong and rental growth continues, owners of well-located Class A buildings could find refinancing conditions improving further over the next several years.