New York, NY, August 15, 2025
News Summary
New York-based RXR is enlarging a long-running funding partnership with Liberty Mutual to deploy up to $1 billion into apartment-focused lending. The expanded program will target senior debt, construction loans and flexible preferred equity to help borrowers facing maturing 2021–2022 multifamily loans and tighter refinancing conditions. RXR has created a new executive role to lead real estate credit and added hires in equity capital markets to scale originations and borrower-facing options. The move coincides with active office-asset repositioning, loan workouts and a 49% stake acquisition in a major Midtown tower tied to a $300M-plus modernization plan.
RXR expands apartment-credit push with Liberty Mutual backing and new credit chief
New York-based real estate firm RXR is scaling a long-running funding partnership with Liberty Mutual to deploy up to $1 billion into apartment-related loans while beefing up its internal credit team. The expanded program will target senior debt, construction loans and flexible preferred equity, aiming to provide faster, more tailored capital where traditional lenders have pulled back.
Top-line context and strategy
RXR says the move responds to a wave of multifamily loans originated in 2021–2022 that are maturing at a time when refinancing is more difficult. The firm frames the situation as a large market gap that private credit providers can fill by offering underwriting speed and flexible deal terms. RXR completed a prior $250 million bond raise backed by institutional partners and originated more than $1 billion in loans last year. The company plans to scale originations markedly in 2025.
Leadership and platform build
RXR created a new executive role to lead its credit business and hired a veteran with decades of commercial real estate lending and securities experience. The new lead will work alongside senior investment and capital markets executives to expand origination channels and borrower-facing optionality. Additional hires were made in equity capital markets to bolster U.S. business development and investor relations for the broader credit push.
Investor backing and positioning
Liberty Mutual Investments has been a capital partner with RXR for more than a decade and manages a sizable investment portfolio. The insurer’s decision to expand its relationship with RXR signals increased institutional support for the firm’s credit strategy. From an investor lens, RXR is positioning its credit arm as a specialist source of transitional multifamily capital where flexibility and speed matter most.
Office portfolio stress and asset moves
While expanding its credit footprint, RXR is also confronting several office-market challenges and active repositioning efforts across large Midtown and Manhattan assets. One Midtown tower moved to a new owner after a foreclosure auction that followed a mortgage default dating back to a loan originated in 2011. The property changed hands at a price materially below the outstanding mortgage balance, and its occupancy was reported around the low 60 percent range at the time of sale.
Separately, RXR is defending other large office loans and properties that have faced workout or preforeclosure actions in recent quarters. One landmark building tied to a large loan entered preforeclosure action by its special servicer amid claimed payment issues. Another prominent Financial District tower experienced lender marketing after a default in 2023.
Loan workout and modification activity
A roughly 2 million–square‑foot office tower that had been in special servicing moved back to a master servicer after a negotiated loan modification. The modified mortgage is a single‑asset, single‑borrower commercial mortgage‑backed securities (CMBS) loan with a maturity in late 2027. The loan’s sponsors are using existing reserves to bridge operating shortfalls while a repositioning plan is developed. That building experienced significant tenant turnover last year that materially affected cash flow and depleted reserve balances.
Asset acquisitions and repositioning
RXR closed on a 49 percent interest in a major Midtown office tower as part of a repositioning program with a global institutional partner. The partners plan to invest over $300 million to modernize the property with upgrades such as a reimagined lobby, new tenant amenities, expanded amenity spaces and a hospitality‑focused building operator program intended to enhance tenant experience. The tower currently has long-term leases that secure a majority of occupancy and will offer a large contiguous block of premium space when a major tenant departs in a future year.
How the moves fit together
The expanded apartment credit initiative and the active management of sizable office holdings reflect a two‑track approach: grow a multi‑billion credit platform to originate loans and provide flexible financing, while selectively repositioning and stabilizing large office assets in major markets. The firm’s footprint spans the New York metro area and several fast-growing Sun Belt and Sun Corridor markets.
Data sources and closing note
Select market and reference data in this report were provided by leading data providers. The developments described include public filings, property records and court records related to loan defaults and auctions. The information is provided to explain the evolving strategy and asset-level outcomes as credit markets shift and office owners adapt.
Frequently asked questions
What is the scale and focus of the new apartment credit program?
The expanded program aims to deploy up to $1 billion into apartment-focused lending, prioritizing senior debt, construction loans and flexible preferred equity for multifamily projects and stabilized properties.
Who is backing the program?
The program expands an existing institutional partnership that has been in place for more than a decade. The institutional backer manages a large investment portfolio and is increasing its capital commitment to RXR’s credit platform.
Why is RXR targeting apartment loans now?
A sizable portion of multifamily loans originated in 2021–2022 are reaching maturity. With traditional lenders reducing exposure in some cases, private credit providers see an opportunity to underwrite and close loans where speed and flexibility are required.
How will the new credit leadership affect lending volume?
RXR named an experienced credit executive to lead the newly established real estate credit role and plans to scale originations significantly in the coming year, aiming to increase volumes several times over current activity.
What office asset actions are underway?
RXR has experienced loan workouts, a foreclosure sale of one Midtown tower after a default, a loan modification that returned a major office building to its master servicer, and a 49 percent acquisition stake in a second major Midtown tower tied to a $300 million-plus repositioning plan.
How does this affect tenants and markets?
Borrowers seeking non‑bank capital may find more flexible and tailored options in the near term. Office tenants could see modernization and amenity upgrades in buildings undergoing repositioning, while landlords manage leases and vacancies to attract large, global occupiers.
Key features at a glance
| Feature | Details |
|---|---|
| Target capital | Up to $1 billion for apartment loans and related credit products |
| Loan types | Senior debt, construction loans, preferred equity |
| Leadership | Newly created executive role to lead real estate credit, plus hires in equity capital markets |
| Office actions | Foreclosure sale of a Midtown tower, loan modification at a large office tower, 49% stake closed in major Midtown asset with $300M+ repositioning plan |
| Geographic footprint | New York metro and other U.S. markets including several fast-growing Sun Belt areas |
| Data sources | Select market and reference data provided by industry data providers |
Deeper Dive: News & Info About This Topic
Additional Resources
- Bloomberg: Liberty Mutual, RXR target $1 billion of property credit deals
- Wikipedia: RXR Realty
- Bisnow: Lender takes RXR’s 340 Madison Ave at auction
- Google Search: RXR 340 Madison Ave auction
- La Caisse: RXR acquires 49% stake in 1211 Avenue of the Americas
- Google Scholar: 1211 Avenue of the Americas Ivanhoe Cambridge RXR
- Commercial Observer: SL Green, RXR secure $940M CMBS workout at One Worldwide Plaza
- Encyclopedia Britannica: One Worldwide Plaza CMBS
- CoStar: RXR names former JPMorgan executive to lead real estate credit
- Google News: RXR names former JPMorgan executive real estate credit
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