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 a $1 billion apartment lending push with Liberty Mutual backing while juggling Midtown office losses and big repositioning plans
New York developer and investor RXR is widening its credit business with expanded backing from Liberty Mutual, rolling out a plan to deploy up to $1 billion into apartment loans and related credit products. The move comes as RXR hires a senior credit executive to lead the effort and as the firm deals with recent office loan defaults, a foreclosure sale and major repositioning projects in Midtown Manhattan.
Key capital push and strategy
RXR and Liberty Mutual are increasing a long-running partnership to target apartment financing that includes senior debt, construction loans, and flexible preferred equity. The program is designed to provide borrowers with more optionality as interest costs rise and traditional lenders tighten underwriting. RXR already raised bonds tied to Liberty Mutual and New York Life in a prior transaction and has originated more than $1 billion in loans over the last year. The firm says it plans to scale loan originations several times over in 2025.
Timing: loan maturities and a refinancing squeeze
The credit push targets what RXR sees as an overlooked opening amid a coming wall of multifamily loans that were made in 2021 and 2022 and are now maturing as refinancing gets harder. With some banks and traditional lenders stepping back from riskier property financing, RXR positions its expanded platform as a provider of tailored capital solutions to fill gaps in the market.
Leadership and platform growth
RXR created a new executive role to lead its real estate credit unit and hired a veteran with decades of experience in commercial real estate finance. The hire joins other recent senior additions focused on equity capital markets and business development as the company pushes both its credit and rental housing strategies. RXR had earlier broadened its credit reach by buying a stake in a national origination and servicing platform.
Office portfolio stress and Midtown moves
The firm’s credit expansion comes while it confronts trouble in its office holdings. RXR lost a 22-story Midtown tower after defaulting on a mortgage; that property changed hands through a foreclosure process and was bought by a firm tied to the lender. RXR also faces preforeclosure action on a landmark Park Avenue building and had a 33-story Financial District tower enter default last year. These events sit alongside recent leasing wins and a separate effort to raise funds to acquire distressed office loans and properties.
Repositioning an iconic Midtown tower
RXR closed on a near half-stake purchase in a major Midtown tower and will act as operator while partnering with the seller on a more than $300 million modernization plan. Planned upgrades include a reimagined lobby, expanded tenant amenities, wellness and conference centers, and plaza improvements intended to appeal to global companies. A large lease extension secures more than half the building’s occupancy for many years, while the expected vacancy created by a departing tenant in 2028 will create a rare contiguous block of premium space.
Loan work-outs and stabilizing moves
One large office tower recently moved out of special servicing following a loan modification. Sponsors of that property will use reserves to cover shortfalls while they pursue a repositioning plan. That same property has seen big tenant moves that materially changed cash flow and forced sponsors to draw on reserves during a period of weak revenue and higher expenses.
Market context and implications
The expanded capital push by RXR with Liberty Mutual backing signals confidence from a large institutional investor, which manages more than $100 billion in investments. For borrowers, the added capital could offer needed flexibility at a time when many banks are pulling back. For RXR, the strategy could turn the firm’s credit arm into a central player underwriting transitional multifamily deals where speed and flexible terms are valuable. At the same time, recent office loan failures and foreclosure outcomes highlight the risks in holding and repositioning large office assets in a weak leasing market.
Data and scope
The reporting references property-level activity across multiple Manhattan office towers, details of loan maturities and modifications, and mentions market and reference data from industry data providers. RXR remains a major New York-area owner and manager, with tens of millions of square feet of commercial space and thousands of multifamily units across several U.S. markets.
FAQ
What is RXR planning with the new credit program?
RXR is expanding a partnership with Liberty Mutual to put up to $1 billion into apartment loans, focusing on senior debt, construction lending and flexible preferred equity to support developers and owners.
Why now?
A large group of multifamily loans made in 2021–2022 are maturing, and refinancing is harder to obtain. RXR aims to fill the lending gap as many traditional lenders reduce risk-taking.
Who will lead the new credit effort?
RXR created a senior credit role and hired an experienced real estate finance executive with long experience at big banks and private credit firms to run the unit.
How does this fit with RXR’s office issues?
The credit expansion runs alongside a challenging period for RXR’s office portfolio, which has included loan defaults, a foreclosure sale of one Midtown building and active repositioning work on others. The firm appears to be balancing credit growth with efforts to stabilize and modernize core assets.
What types of borrowers will this program serve?
The program will target multifamily borrowers needing senior loans, construction financing or flexible preferred equity, particularly where speed and tailored terms matter.
How big is Liberty Mutual’s role?
Liberty Mutual is expanding a long-term partnership with RXR and is backing this expanded capital program. The insurer has a large investment platform and has worked with RXR for years.
Key features at a glance
| Feature | Detail |
|---|---|
| Program size | Up to $1 billion targeted for apartment lending |
| Backing partner | Liberty Mutual (long-standing investor relationship) |
| Loan types | Senior debt, construction loans, flexible preferred equity |
| Leadership | New executive hire to lead real estate credit; other senior hires in equity capital markets |
| Recent origination | More than $1 billion in loans originated last year; plans to scale in 2025 |
| Office challenges | Recent mortgage default and foreclosure sale of a Midtown tower; other loan defaults and preforeclosure actions |
| Repositioning budget | Over $300 million planned for modernization of a major Midtown tower |
| Geographic footprint | New York metro and fast-growing U.S. markets including Phoenix, Denver, Dallas, Raleigh and Tampa |
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
Author: Construction NY News
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