Five months after New York City-based office REIT Paramount Group was acquired by Rithm Capital Corp., the landlord has been rebranded as Elecor Properties, Rithm announced Tuesday.
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Alongside the rebranding of the landlord of 13M SF of Manhattan and San Francisco office space, Rithm announced plans for a $250M capital improvement program and trumpeted a new corporate philosophy toward its office portfolio.
That includes new lobby bars and other amenities that are designed to help tenants attract the best and brightest talent.
“Elecor Properties is purpose-built around a simple thesis: office space is no longer measured by square footage alone, but by the ability to attract top talent, foster collaboration and drive measurable productivity,” Rithm stated in a press release, adding that the infusion of capital is aimed to “elevate the office experience and set a new standard for what buildings can offer.”
Renovation projects include transforming the lobby and second-floor amenity space with a bar and events venue and a 200-seat conference atrium on the 17th floor of 1633 Broadway as well as an unspecified “hospitality-driven amenity offering” for 712 Fifth Ave., both in New York City.
Rithm also plans to redesign the atrium and ground-floor area at One Market Plaza in San Francisco with a new conference and fitness center, an atrium bar, a seventh-floor sky bar and a rooftop deck. At its One Front St. building, it plans a redesigned lobby with café, bar and restaurant.
“Today’s milestone is not simply a rebrand — it reflects our belief that the next generation of office buildings should do more than house companies. They should enhance how people work,” Rithm CEO Michael Nierenberg said in the release. “Rithm’s ownership gives it the capital, scale and institutional discipline needed to unlock its full potential, and we’re investing behind that conviction.”
Rithm, a New York City-based, publicly traded asset manager focused on residential mortgage loans, acquired Paramount Group for $1.6B in a deal that closed in December. It also acquired Sculptor Capital Management in 2024 and Crestline last year.
In concert with its Elecor rebrand announcement, Rithm reported its first-quarter earnings — its first full period since the deal. It reported $289M in earnings available for distribution, down from $418.9M in the fourth quarter.
In the Paramount/Elecor portfolio, Rithm reported leased occupancy increased 4.7% year-over-year, and the bulk of new leasing came in its San Francisco portfolio.
Rithm Capital’s share price slid by nearly 2% by early afternoon Tuesday to less than $10 per share.
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