DRA Advisors Buys 49% Stake in $1.3B Midtown Office Tower

DRA Advisors takes a 49% stake in Rithm Capital’s fully leased Midtown tower, valuing 1301 Avenue of the Americas at $1.3 billion.
DRA Advisors Buys 49% Stake in $1.3B Midtown Office Tower
  • DRA Advisors is buying a 49% stake in 1301 Avenue of the Americas, a 45-story, 1.7M SF Midtown tower valued at $1.3B, in a joint venture with Rithm Capital.
  • Rithm keeps the 51% majority and operates the fully leased building through Elecor Properties, the former Paramount Group, which it acquired in a $1.7B office portfolio deal.
  • Newmark arranged the transaction, and both Rithm and DRA framed it as a vote of confidence in high-quality New York office assets and the broader Manhattan market.
Key Takeaways

DRA Advisors is taking a 49% stake in 1301 Avenue of the Americas, a Midtown office tower valued at $1.3B, according to Commercial Observer.

The deal forms a joint venture with Rithm Capital, which keeps a 51% majority stake and will operate the building.

Inside the Joint Venture

The valuation comes from sources close to the deal. Rithm will run the property through Elecor Properties, a subsidiary formerly known as Paramount Group, which Rithm acquired in December 2025.

A Newmark team of Adam Doneger, Adam Spies and Ben Lushing arranged the transaction. Doneger said DRA’s investment reflects strong conviction in both the property and the broader New York office market.

A 1964 Tower With Blue-Chip Tenants

The 45-story, 1.7M SF building sits on Sixth Avenue at West 53rd Street. It opened in 1964 and has previously been known as the Crédit Lyonnais Building and the J.C. Penney Building.

The asset is fully leased. Tenants include KeyBank, Piper Sandler, Crédit Agricole and O’Melveny & Myers.

Rithm’s Elecor Platform

Rithm, a publicly traded mortgage REIT and alternatives firm, acquired Paramount Group’s entire office portfolio for $1.7B last year. It rebranded the business as Elecor Properties in April 2026.

The Elecor portfolio includes 745 Fifth Ave., 900 Third Ave. and 31 W. 52nd St. in New York, plus One Market Plaza and 300 Mission St. in San Francisco.

Why It Matters

Rithm CEO Michael Nierenberg said bringing in an experienced, well-capitalized partner lets the firm keep growing its asset management platform while staying closely involved in the asset. He called the tower representative of strong demand in the broader New York office market.

DRA Senior Managing Director Brett Gottlieb described it as “a premier asset in one of the country’s strongest office markets.”

What’s Next

Both partners said they plan to build on the relationship. Gottlieb said DRA looks forward to “combining our respective strengths at 1301 and growing the partnership from here.”

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