Rithm Capital is trying to herald a accomplice on the Paramount Group’s crown jewel it purchased final 12 months for $1.6 billion.
The corporate is in search of a three way partnership accomplice on the 1.75 million-square-foot workplace tower at 1301 Sixth Avenue, The Actual Deal has discovered. It’s eyeing a deal that will worth the 45-story constructing at $1.4 billion.
Rithm’s buy final 12 months valued Paramount Group at $4.9 billion, and on the time it sought to herald a accomplice on the acquisition, based on a supply accustomed to the method. Rithm didn’t discover a accomplice and is now providing 1301 Sixth as a part of a technique to do joint ventures on the property degree.
“The providing represents the primary asset-level partnership alternative from Rithm Capital’s December 2025 acquisition of Paramount Group, that includes the portfolio’s trophy asset and offering traders a uncommon alternative to accomplice in one in every of its most distinguished holdings,” learn an providing memo from Newmark.
The constructing is 98 % leased with $1.2 billion price of hire coming in over the subsequent 10 years, and is being pitched to potential companions as a cash-flowing funding with draw back safety.
A consultant for Rithm didn’t instantly reply to a request for remark. A Newmark group led by Adam Spies and Adam Doneger is operating the advertising and marketing course of.
Tenants on the Sixties-era workplace tower embrace Piper Sandler, Credit score Agricole and O’Melveny & Myers. Paramount Group invested within the constructing with upgrades like a renovated foyer and up to date elevator system. It additionally constructed an amenity middle dubbed Paramount Membership on the constructing’s thirty ninth and fortieth flooring.
Paramount additionally secured a $900 million CMBS refinancing for the property final 12 months. The providing memo notes the debt has a good fastened fee.
Rithm Capital, led by CEO Michael Nierenberg, acquired Paramount in a bidding course of that included SL Inexperienced, Vornado, Blackstone, Empire State Realty and DivcoWest with Dubai-based Saray Capital.
The REIT went up on the market after it disclosed in July that it was below an investigation by the Securities and Change Fee. The Actual Deal reported that CEO Albert Behler personally pushed for a no-bid contract to a safety firm the place his ex-girlfriend was a senior supervisor.
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