DRA Advisors Takes 49% Stake in Midtown Tower Valued at $1.3 Billion

Rithm Capital retains majority control of the 1.7 million-square-foot property at 1301 Avenue of the Americas, fully leased to KeyBank, Piper Sandler and other tenants.

By the Family Office Real Estate Daily Desk·Monday, October 5, 2026·2 min read

Editorial summary of reporting byCommercial Observer Our editorial standards →

The answer · checked against Commercial Observer

What are the terms of DRA Advisors' stake purchase in 1301 Avenue of the Americas?

DRA Advisors is acquiring a 49% stake in 1301 Avenue of the Americas, a 45-story, 1.7 million-square-foot Midtown Manhattan office tower valued at $1.3 billion, according to sources close to the deal. Rithm Capital retains a 51% majority stake and will continue operating the fully leased building through its subsidiary Elecor Properties. Newmark's Adam Doneger, Adam Spies, and Ben Lushing arranged the transaction.

Key facts

DRA Advisors is taking a 49% stake in 1301 Avenue of the Americas, which is currently valued at $1.3 billion, according to sources close to the deal.
Rithm Capital will maintain a 51% majority stake in 1301 Avenue of the Americas and operate the building through Elecor Properties, formerly Paramount Group.
The 45-story, 1.7 million-square-foot office tower at 1301 Avenue of the Americas is fully leased to tenants including KeyBank, Piper Sandler, Crédit Agricole, and O'Melveny & Myers.
A Newmark team of Adam Doneger, Adam Spies, and Ben Lushing arranged the DRA Advisors transaction, according to sources.
Rithm Capital acquired Paramount Group's entire office portfolio for $1.7 billion and rebranded the firm as Elecor Properties in April 2026.
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.

DRA Advisors Takes 49% Stake in Midtown Tower Valued at $1.3 Billion — Image: editorial illustration · Story sourced from Commercial Observer

DRA Advisors has acquired a 49 percent stake in 1301 Avenue of the Americas, forming a joint venture with Rithm Capital to own and operate the Midtown Manhattan office tower. The property is currently valued at $1.3 billion, sources close to the deal said.

Rithm Capital will maintain a 51 percent majority stake and operate the 45-story, 1.7 million-square-foot building through Elecor Properties, a subsidiary of Rithm that manages the firm's office portfolio. Elecor Properties was formerly Paramount Group, which Rithm Capital acquired in December 2025.

A Newmark team of Adam Doneger, Adam Spies and Ben Lushing arranged the transaction, sources said. Doneger said in a statement that DRA's investment reflects strong conviction in both 1301 Avenue of the Americas and the broader New York City office market.

The tower is located on the corner of Sixth Avenue and West 53rd Street in the heart of Midtown Manhattan. It 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.

Michael Nierenberg, chief executive 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. He said 1301 Avenue of the Americas is representative of the strong demand of the broader New York City office market.

Partnering with an experienced, well-capitalised firm like DRA allows Rithm to continue growing its asset management platform while staying closely involved in the asset's long-term success, Nierenberg said.

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. 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 said. Last year, Rithm Capital 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 and 31 West 52nd Street in New York City, and One Market Plaza and 300 Mission Street in San Francisco.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

DRA's minority entry at a $1.3 billion valuation implies an equity cheque of roughly $637 million for 49 percent, assuming no debt refinancing accompanied the recapitalisation. That pricing suggests DRA underwrote stabilised cash flow rather than a value-add thesis, which limits upside but also caps execution risk in a market where occupancy remains the gating variable.

The structure favours institutional LP capital or a programmatic joint venture over co-GP participation. Rithm retained operating control and the asset is fully leased, leaving little room for a hands-on partner to add alpha through leasing or repositioning. A family office considering a similar exposure should price in that DRA is buying into management continuity and existing tenant credit, not a turnaround.

The valuation implies a price per square foot of roughly $765, which sits at the upper end of Midtown trophy pricing in a market where sub-$500 per foot distress has been common. That premium reflects full occupancy and investment-grade tenancy. Underwrite tenant rollover risk over the next three years and model what happens to that $1.3 billion mark if KeyBank or Crédit Agricole do not renew at current rents.

Avoid mistaking this for a contrarian office bet. The deal is a bet on stability, not dislocation. If the thesis is that New York office is mispriced, this is not the entry point. If the thesis is that best-in-class, fully-leased towers with long-dated leases will hold value through a flight-to-quality cycle, then a minority stake alongside an operator with a multi-asset platform is the right format.

Questions this story answers

01What is the ownership structure of 1301 Avenue of the Americas after this deal?

Rithm Capital retains a 51% majority stake in 1301 Avenue of the Americas and will operate the building through its subsidiary Elecor Properties. DRA Advisors is acquiring a 49% stake. The property is currently valued at $1.3 billion, according to sources close to the deal.

02Who are the tenants at 1301 Avenue of the Americas?

1301 Avenue of the Americas is fully leased. Tenants named in the source include KeyBank, Piper Sandler, Crédit Agricole, and O'Melveny & Myers.

03What other properties does Elecor Properties own besides 1301 Avenue of the Americas?

The Elecor Properties office portfolio includes 745 Fifth Avenue, 900 Third Avenue, and 31 West 52nd Street in New York City, as well as One Market Plaza and 300 Mission Street in San Francisco, according to the source.

04How did Rithm Capital come to own 1301 Avenue of the Americas?

Rithm Capital acquired Paramount Group's entire office portfolio for $1.7 billion and rebranded the firm as Elecor Properties in April 2026. Elecor Properties, as a subsidiary of Rithm Capital, manages 1301 Avenue of the Americas.

05Who brokered the DRA Advisors stake purchase at 1301 Avenue of the Americas?

A Newmark team consisting of Adam Doneger, Adam Spies, and Ben Lushing arranged the transaction, according to sources. Adam Doneger said in a statement that 'DRA's investment alongside Rithm reflects strong conviction in both 1301 Avenue of the Americas and the broader New York City office market.'

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Original reporting

Commercial Observer

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