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 Boosts Apartment Credit Program to up to $1 billion with Backing from Liberty Mutual; Credit Team Expanded as Office Assets Face Stress
New York-based RXR is accelerating a major shift into real estate lending with expanded backing from Liberty Mutual. The partnership will deploy up to $1 billion into apartment-focused credit products, targeting senior debt, construction loans, and flexible preferred equity. The move comes as a significant wave of multifamily loans originated in 2021–2022 nears maturity, and refinancing has become tougher across the sector.
What’s new and why it matters
RXR is positioning its credit arm to fill a financing gap that emerged as traditional lenders pulled back. Company leadership describes the moment as a generational opportunity to provide capital where other sources have become risk-averse. The expanded program aims to offer borrowers more tailored capital solutions and faster executions, especially for transitional or time-sensitive multifamily deals.
Liberty Mutual Investments, which manages over $100 billion, has been a partner with RXR since 2010. The renewed and larger commitment signals institutional support for RXR’s long-term credit strategy and underpins planned growth in loan originations.
Team additions and credit build-out
RXR created a new executive role to lead real estate credit and hired Steven Schwartz, a veteran of large banking and credit platforms, to fill it. The firm also named executives to expand equity capital markets and business development. RXR originated more than $1 billion in loans last year and plans to scale origination volumes several times over in 2025.
How the credit push fits the market
Rising interest rates and tighter bank lending have steered private equity and real estate firms toward credit businesses. RXR’s platform is framed as a sophisticated private-credit approach to meet borrower needs that include speed, flexibility, and tailored pay structures. Select market data for this reporting were provided by ICE Data Services; select reference data were provided by FactSet.
Office troubles: foreclosures, repositioning, and loan fixes
While expanding its credit arm, RXR is also confronting stress in parts of its office portfolio. A Midtown office tower formerly held by RXR was sold at a foreclosure auction to an affiliate of the mortgage lender after RXR defaulted on a decade-old loan. That building changed hands at a price well below its earlier loan balance and had been roughly 60% occupied at the time of sale.
RXR is also locked in litigation and collection activity tied to other major office holdings, including a landmark Park Avenue property and a Financial District tower where lenders are marketing a takeover opportunity. These moves come alongside efforts to reposition large Midtown assets and secure long-term leases that underpin occupancy and cash flow.
Major repositioning and operational plays
RXR closed on a nearly half-stake acquisition in a prominent Midtown tower and will operate the building going forward. A multi-year, multi-hundred-million-dollar modernization program is planned to refresh lobbies, plazas, amenities, and tenant services. One anchor tenant extension already secures more than half of the building’s occupancy into the 2040s, and a future vacancy is expected to create a large contiguous block that could be marketed as a rare “building within a building” in Midtown.
Loan modifications and other property-level fixes
A large office tower that experienced major tenant departures recently moved out of special servicing after a loan modification that uses reserves to bridge short-term cash gaps. Sponsors plan to employ reserves while developing repositioning plans and pursuing new leasing to stabilize cash flow ahead of the loan maturity.
Big picture: balancing credit growth with stressed office holdings
RXR’s strategy now blends credit origination and targeted office repositioning. The expanded credit platform is designed to originate and underwrite a wide range of deals across multifamily and commercial real estate, using the firm’s operating experience to structure loans and equity that solve real estate owners’ needs. The firm reports ownership of more than 30.5 million square feet of commercial property and nearly 9,800 multifamily units, and it has operations across several U.S. markets beyond New York.
Near-term risks and indicators to watch
- Refinancing pressure on 2021–2022 multifamily loans and the pace of interest-rate normalization.
- Leasing outcomes for large Midtown blocks and the success of repositioning programs.
- Performance of newly originated loans and the platform’s underwriting discipline as volumes scale.
FAQ
What is RXR’s new credit program?
RXR, with expanded backing from Liberty Mutual, is preparing to deploy up to $1 billion into apartment-focused lending, including senior loans, construction financing, and preferred equity with flexible terms.
Why is RXR targeting multifamily loans now?
A large set of multifamily loans originated in 2021–2022 is coming due, while traditional lenders have tightened standards. RXR sees demand for non-bank capital and aims to offer faster, more flexible financing.
Who is leading RXR’s credit effort?
RXR created a new executive role for real estate credit and hired a senior industry executive with decades of experience to lead the effort, supported by additions to equity capital markets and business development teams.
How are RXR’s office assets performing?
Some office properties have faced defaults and foreclosure actions, while others are undergoing loan modifications or active repositioning. The firm is both defending assets and investing in modernization at select Midtown buildings.
What should investors and borrowers watch next?
Monitor loan origination growth, underwriting performance, lease-up success for repositioned office space, and broader interest-rate and refinancing trends that affect capital costs.
Key Features Table
| Topic | Details |
|---|---|
| Credit Program Size | Up to $1 billion targeted for apartment loans, construction financing, and preferred equity. |
| Backer | Liberty Mutual Investments (partner since 2010; over $100 billion under management). |
| Leadership | New executive leading real estate credit; additional hires in equity capital markets and business development. |
| Loan Volume | More than $1 billion in loans originated last year; plans to grow originations significantly in 2025. |
| Office Portfolio Actions | Foreclosure sale of a Midtown tower, loan default and modification activity, and a major repositioning program at a separate Midtown asset. |
| Market Data Sources | Select market data from ICE Data Services; select reference data from FactSet. |
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
