Rithm Capital to Land $415M Refi for Plaza District Asset
The deal is expected to close later this month.
Rithm Capital Corp. will soon secure a $415 million refinancing loan for 31 W. 52nd St., a 785,087-square-foot office tower in Manhattan’s Plaza District, according to a Fitch Ratings report. The loan represents 64.3 percent of the property’s current appraised value, calculated at $645 million.
Wells Fargo Bank, Bank of America, Barclays Capital Real Estate Inc., Citi Real Estate Funding Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are expected to co-originate the three-year, fixed rate mortgage loan. Trimont and Argentic Services Co. will serve as servicer and special servicer, respectively.
Equitable and Metropolitan Life Insurance Co. issued a 10-year, $500 million loan in 2016, according to Yardi Matrix data. Together with $85 million in mezzanine financing and other $72.5 million of borrower sponsor equity, the refinancing retires the existing debt, covers outstanding landlord leasing obligations in the amount of $43 million, as well as $22.2 million of interest reserve and another $9 million in closing costs. The deal is slated to close on July 15, 2026.
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The asset has been under Rithm Capital’s ownership since 2007, according to the data provider, and has been managed by the company’s management arm Elecor Properties—formerly dubbed Paramount Group.
A closer look at Rithm’s Plaza District asset
Completed in 1986, the office property rises 20 stories and features floorplates ranging from 16,000 to 39,800 square feet. A LEED Gold-certified asset, the high-rise features 14 passenger elevators, a 120-spot parking garage and nearly 33,000 square feet of retail space. The property is two blocks north of Rockefeller Center and across the street from MoMA.
As of June, the office building was 86.5 percent leased, according to the same Fitch Ratings report, to 16 tenants, including Cushman & Wakefield, Wilson Sonsini Goodrich & Rosati, Centerview Partners and Pillsbury Winthrop Shaw Pittman.
Manhattan holds its office market edge
Manhattan’s office fundamentals remain the strongest ones across the U.S., having found the momentum towards a golden ticket—average office listing rates continue to climb to unmatched values, vacancy drops, investment prices soar and the borough’s pipeline is among the largest in the country.
On this backdrop, recent noteworthy office refinancing deals across the borough include Soloviev Group securing $1.8 billion for the 1.7 million-square-foot office tower at 9 W. 57th St. The property is five blocks north of Rithm’s high-rise. Similarly, in May, Vornado Realty Trust and Aurora Capital Associates received $161 million in financing for 61 Ninth Ave., an office building in the Meatpacking District.
Earlier this month, Broad Street Development and KSR Capital obtained $138 million to refinance 370 Lexington Ave., while a joint venture comprising Related Cos., Oxford Properties Group, STRS Ohio, JP Morgan Asset Management and PIMCO Prime Real Estate received $1.4 billion for 10 Hudson Yards.
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