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 ramps up a $1 billion apartment-credit push with major backing, hires credit chief as office challenges continue
New York-based real estate company RXR is expanding a long-running partnership to put as much as $1 billion into apartment loans, backed by insurance investor Liberty Mutual. The program will focus on senior debt, construction loans and flexible preferred equity aimed at borrowers who need faster, more adaptable financing as traditional lenders step back.
Immediate development: credit growth and new leadership
RXR has hired a senior credit executive to lead its growing real estate credit business, signaling a push to scale originations. The newly created role will oversee loan underwriting and product design as the firm seeks to expand its lending several times over in 2025. Last year RXR originated just over $1 billion in loans and earlier completed a separate $250 million bond issuance backed by major insurance partners.
Why now: a refinancing wall and tighter bank lending
The timing of the expansion comes as a large volume of multifamily loans made in 2021 and 2022 approach maturity at a time when refinancing is harder to secure. With banks and some traditional lenders reducing exposure, RXR and its insurance partner see an opening to provide tailored capital solutions to owners facing higher costs and stricter terms from bank lenders.
Partners and scale: Liberty Mutual relationship and platform reach
Liberty Mutual Investments, with more than $100 billion under management, has been a partner of RXR since 2010. The renewed commitment to this credit program could be read as long-term confidence in RXR’s strategy. RXR’s stated platform already spans a large credit capability used to originate and acquire commercial real estate loans across several U.S. markets.
Office portfolio pressure: foreclosures, defaults and repositioning work
The credit push arrives as RXR wrestles with several office-asset problems. The company recently lost ownership of a Midtown office tower after defaulting on a long-dated mortgage; the building was sold to another institutional buyer through a foreclosure sale. RXR also faces preforeclosure proceedings tied to a landmark Park Avenue property and has a previously defaulted Financial District office loan on the market as a takeover opportunity.
Separately, a nearly 2 million-square-foot Midtown tower owned in part by RXR moved out of special servicing after a loan modification. That building had notable tenant departures that materially reduced cash flow and forced sponsors to draw reserves while they work on a repositioning plan. These developments show how office stress is pushing owners to pursue both asset upgrades and new capital strategies.
Office reinvestment and operations: big Midtown play
Amid the challenges, RXR closed on a 49% interest in a major Midtown office tower and will lead a project to invest more than $300 million to modernize the two million–square-foot property. Planned changes include a refreshed lobby, upgraded plaza, new tenant amenities and a hospitality-style operator program meant to boost tenant experience and retain large occupants. One existing tenant extension secures roughly half the building’s occupancy for many years, and the near-term departure of another large tenant creates a rare contiguous block of premium space.
Staffing and business lines: hires to support credit and capital markets
RXR named an experienced credit executive from large banking and private credit backgrounds to lead the credit business. Additional senior hires in equity capital markets were added to support business development and investor relationships. These moves back an intent to grow both lending volume and tailored capital offerings for owners of rental housing and transitional office assets.
What this means for the market
For borrowers, the expanded program promises quicker and more flexible financing options where traditional lenders are retreating. For investors, it aims to fill a capital gap with structured credit products built around local real estate know-how. For the owner of troubled office properties, the strategy blends loan origination, asset-level repositioning and operational management to try to stabilize cash flow and reposition buildings for new demand.
Data and context
Select market and reference data used in related analysis come from established financial and market-data providers. The company reports owning and managing more than 30.5 million square feet of commercial property and roughly 9,800 multifamily units, with operations in New York and a range of fast-growing U.S. markets.
Frequently Asked Questions
Q: What is the size and focus of the expanded credit program?
A: The program is being expanded to deploy up to $1 billion into apartment loans, targeting senior debt, construction loans and flexible preferred equity products.
Q: Who is backing the program?
A: The program is backed by a large insurance investment arm with significant assets under management and an existing partnership with the lender dating back more than a decade.
Q: Why is RXR expanding its credit business now?
A: A large wave of multifamily loans is maturing, refinancing has become harder, and many traditional lenders have reduced lending. RXR is positioning to provide capital solutions where others are pulling back.
Q: How does office asset stress affect this strategy?
A: Office defaults and ongoing repositioning needs mean RXR is balancing both lending and active asset management. Capital from the credit arm can be used to support transitional deals and modernization plans for office properties.
Q: Who is leading the credit effort?
A: RXR named a veteran credit executive to head its newly created real estate credit role, supported by additional hires in equity capital markets and investment teams.
Key features at a glance
| Feature | Description |
|---|---|
| Program size | Up to $1 billion targeted for apartment loans |
| Loan types | Senior debt, construction loans, flexible preferred equity |
| Lead hire | Newly created executive role to lead real estate credit |
| Strategic backing | Long-term insurance investor partnership renewed |
| Office actions | Foreclosure sale of one Midtown tower; ongoing repositioning at a major Midtown asset; loan modification at a large office property |
| Company scale | Ownership and management of 30.5M+ sq ft commercial space and ~9,800 multifamily units |
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 TX News
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