Strong lender interest highlights continued demand for high-quality New York office properties
Rithm Capital is moving to refinance one of the flagship office buildings it acquired through its purchase of Paramount Group, signaling continued investor confidence in premium office assets located in New York City despite ongoing challenges across the broader U.S. office market.
The New York-based investment firm is seeking approximately $500 million in financing for the 29-story office tower at 31 W. 52nd Street, located just steps from Rockefeller Center in Midtown Manhattan. The transaction reflects sustained lender interest in well-performing, high-quality office buildings with stable occupancy and long-term tenant commitments.
While many office properties across the country continue to face elevated vacancy rates and financing difficulties, Manhattan’s trophy office market has remained comparatively resilient. Investors and lenders continue to favor buildings with strong tenant rosters, prime locations, and reliable cash flow.
According to reports, the refinancing package will include a $415 million first mortgage provided jointly by several major financial institutions, including Wells Fargo, Bank of America, Barclays, Citi, Goldman Sachs, and Morgan Stanley. The loan is expected to be packaged into a single-asset commercial mortgage-backed securities (CMBS) transaction known as NYC 2026-31W.
In addition to the senior mortgage, the financing structure includes approximately $85 million in mezzanine debt and a $72.5 million equity contribution from Rithm Capital. The transaction is expected to close in mid-July.
The refinancing represents Rithm’s first significant securitized office financing since completing its approximately $1.6 billion acquisition of Paramount Group in late 2025. That acquisition added several prominent office properties in Midtown Manhattan and San Francisco to the company’s commercial real estate portfolio.
Proceeds from the new financing will primarily be used to retire the building’s existing $500 million debt. Additional funds will be allocated toward tenant improvement obligations, interest reserves, and transaction-related closing costs.
The approximately 750,000-square-foot office tower remains one of Midtown’s well-leased assets, with occupancy standing at roughly 86% across about 16 tenants. The property also benefits from a weighted average lease term of nearly 10 years, providing stable long-term rental income.
Its largest tenants include Cushman & Wakefield, Pillsbury Winthrop Shaw Pittman, Wilson Sonsini Goodrich & Rosati, and Centerview Partners, which together occupy nearly 70% of the building’s leasable space. Cushman & Wakefield is also preparing to relocate its New York headquarters to more than 133,000 square feet within the tower later this year, further strengthening the property’s long-term leasing profile.
Source: Original reporting by Mark Heschmeyer, CoStar News.
