Rithm Capital is looking to bring in a partner on the Paramount Group’s crown jewel it bought last year for $1.6 billion.
The company is seeking a joint venture partner on the 1.75 million-square-foot office tower at 1301 Sixth Avenue, The Real Deal has learned. It is eyeing a deal that would value the 45-story building at $1.4 billion.
Rithm’s purchase last year valued Paramount Group at $4.9 billion, and at the time it sought to bring in a partner on the acquisition, according to a source familiar with the process. Rithm didn’t find a partner and is now offering 1301 Sixth as part of a strategy to do joint ventures at the property level.
“The offering represents the first asset-level partnership opportunity from Rithm Capital’s December 2025 acquisition of Paramount Group, featuring the portfolio’s trophy asset and providing investors a rare opportunity to partner in one of its most prominent holdings,” read an offering memo from Newmark.
The building is 98 percent leased with $1.2 billion worth of rent coming in over the next 10 years, and is being pitched to potential partners as a cash-flowing investment with downside protection.
A representative for Rithm did not immediately respond to a request for comment. A Newmark team led by Adam Spies and Adam Doneger is running the marketing process.
Tenants at the 1960s-era office tower include Piper Sandler, Credit Agricole and O’Melveny & Myers. Paramount Group invested in the building with upgrades like a renovated lobby and updated elevator system. It also built an amenity center dubbed Paramount Club on the building’s 39th and 40th floors.
Paramount also secured a $900 million CMBS refinancing for the property last year. The offering memo notes the debt has a favorable fixed rate.
Rithm Capital, led by CEO Michael Nierenberg, acquired Paramount in a bidding process that included SL Green, Vornado, Blackstone, Empire State Realty and DivcoWest with Dubai-based Saray Capital.
The REIT went up for sale after it disclosed in July that it was under an investigation by the Securities and Exchange Commission. The Real Deal reported that CEO Albert Behler personally pushed for a no-bid contract to a security company where his ex-girlfriend was a senior manager.
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