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 credit push with up to $1 billion in apartment lending, backed by Liberty Mutual
New York–based real estate firm RXR is scaling up a credit program backed by Liberty Mutual to deploy as much as $1 billion into apartment lending. The expanded plan focuses on senior debt, construction loans, and flexible preferred equity aimed at borrowers facing a tougher refinancing market. RXR has also added a senior credit hire to lead the effort, signaling a move to grow its lending business quickly in response to market gaps.
Top-line details and why it matters now
The push comes as a large group of multifamily loans made in 2021–2022 reach maturity and refinancing becomes more difficult. With many traditional lenders pulling back, RXR and Liberty Mutual see a chance to provide capital that banks are less willing to supply. RXR’s chief executive described this timing as a notable, long‑term opportunity to step into transitional and near-term financing needs.
Liberty Mutual Investments has a very large asset base and has been a partner with RXR for years. That ongoing partnership, and a prior $250 million bond raise backed by Liberty Mutual and another insurer, point to a deepening financial relationship intended to support RXR’s credit expansion.
Leadership and scale
RXR named a new head of real estate credit with more than three decades of industry experience to run the growing platform. The firm reported originating over $1 billion in loans last year and plans to scale origination volume several times over in the coming year. New hires in equity capital markets are intended to link lending growth to broader capital and deal activity.
Product focus and borrower solutions
The expanded platform will offer tailored capital solutions that include senior mortgages, construction financing and preferred equity structures that are more flexible than traditional bank loans. The stated goal is to offer borrowers optionality—speed, certainty and structure—at a time when rising costs and tighter lending standards have limited conventional options.
Recent office stress, foreclosures and repositioning moves
Parallel to the credit buildout, RXR is confronting pressure in its office portfolio. The firm lost a Midtown office tower after defaulting on a mortgage and a court sale transferred the property to a major insurance-owned investment manager for a substantially lower price than the original loan amount. A separate landmarked office building is tied to alleged defaults and preforeclosure action from commercial mortgage investors. Another tower moved out of special servicing after a loan modification, but it is operating with reduced occupancy and reserves that have been used to manage shortfalls.
At the same time, RXR closed on a 49% interest in a large Midtown tower and plans to spend over $300 million to modernize the property. That repositioning includes upgrades to the lobby, plaza, tenant amenities and a tenant experience program designed to make the building more competitive for large, global occupiers. A major tenant lease already secures more than half the building through the 2040s, while additional contiguous space will become available later this decade.
Market context and sources of data
The firm’s move into larger-scale lending follows a broader trend of private real estate firms stepping into credit as banks reduce exposure. Select market and reference data for the background reporting were drawn from recognized market data and financial information services.
What this could mean
If the program reaches its stated size and origination goals, RXR’s credit arm could become a go‑to lender for transitional multifamily deals and other transactions where speed and flexible structures matter most. The expanded platform also gives RXR another way to deploy capital while the office sector goes through repositioning, restructuring and selective asset sales.
Risks and watch points
Key risks include loan performance if property cash flows weaken, continued pressure in the office market, and competition from other private-credit players. The timing of the multifamily loan maturities and how quickly borrowers can refinance or recapitalize will be an important indicator of how large the opportunity will be for new lenders.
FAQ
What is the size and aim of the new credit program?
The program is being expanded to deploy up to $1 billion, focused on apartment-focused senior debt, construction loans, and flexible preferred equity to bridge refinance and construction needs.
Who is backing the plan?
The program is backed by a major insurance investment group that has partnered with the firm for many years and manages a very large pool of assets.
Why now?
Many multifamily loans made in 2021–2022 are maturing at once, and traditional lenders have tightened lending. That creates a window for nonbank lenders offering tailored solutions.
What happened to the Midtown office tower that went to foreclosure?
The owner defaulted on a long-standing mortgage and the building sold at a court-directed sale for a price well below the original loan. The property was partially occupied at the time of the sale.
How does this fit with RXR’s other office moves?
The firm is actively repositioning and modernizing some flagship Midtown assets while managing distress in others, using a mix of asset sales, legal proceedings and fresh capital to stabilize holdings.
Key features at a glance
| Feature | Detail |
|---|---|
| Program size | Up to $1 billion for apartment credit |
| Backer | Major insurance investment group with long-standing partnership |
| Loan focus | Senior debt, construction loans, flexible preferred equity |
| Leadership | New executive hired to run real estate credit; additional senior hires in capital markets |
| Recent originations | Over $1 billion originated last year; plans to scale significantly in 2025 |
| Office actions | Foreclosure sale of a Midtown tower; loan modification at a large office complex; 49% stake acquired in another Midtown landmark with $300M+ repositioning plan |
| Portfolio size | Reported ownership of over 30 million sq ft of commercial space and nearly 10,000 multifamily units |
| Markets | New York metro and growth markets including Phoenix, Denver, Dallas, Raleigh, 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 CA News
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