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 Liberty Mutual backing
New York-based RXR is expanding a credit push, building on a long-running partnership with Liberty Mutual to deploy up to $1 billion into apartment loans. The program will focus on senior debt, construction loans and flexible preferred equity, aiming to provide tailored capital at a time when many traditional lenders are pulling back.
Why it matters now
The move lands as a large number of multifamily loans made in 2021–2022 are coming due. Refinancing is harder and more expensive than before, creating what RXR’s leadership has described as a major market opening for private credit providers to step in. RXR says its expanded platform will give borrowers more choices and speed when underwriting transitional multifamily deals where flexibility matters.
New leadership and scale-up plans
RXR hired a senior credit executive to lead the growing business. The newly created role heads a credit team expected to help scale originations well beyond the firm’s recent pace. RXR originated more than $1 billion in loans last year and says it plans to grow originations several times over in 2025. The company previously raised a $250 million bond backed by Liberty Mutual and another insurer as part of its broader capital strategy.
Backer strength and strategy
Liberty Mutual Investments, which manages over $100 billion, has backed RXR since 2010. The renewed commitment from that insurer signals continued confidence in RXR’s long-term credit strategy. RXR positions its credit arm as a sophisticated option for investors and borrowers seeking solutions when banks and other traditional lenders step back.
Office market stress and repositioning moves
The credit push comes amid a busy and sometimes painful stretch for RXR’s office portfolio. The firm lost a Midtown office tower at a foreclosure auction after defaulting on a mortgage originally funded in 2011. That 22-story building changed hands through the court process, with the acquiring firm paying substantially less than the original loan balance. The property was roughly 60% occupied at the time of the transfer.
RXR is also contending with preforeclosure actions tied to a landmark Park Avenue office and a separate defaulted Financial District tower from last year. At the same time, RXR has recorded leasing wins at other Midtown assets and launched programs to reposition large buildings. One recent deal sees RXR take a near-half interest in a prominent Midtown tower and lead a planned modernization program that will include lobby upgrades, plaza work, new amenities and a tenant experience initiative. That project will include more than $300 million in planned investments and retains a major news tenant that secures roughly 55% of the building through the early 2040s.
Loan workouts and modifications
One large office tower that had been in special servicing moved out of special servicing after a loan modification. The modified mortgage is a roughly $940 million CMBS loan with about $260 million of additional mezzanine financing. The building has seen notable tenant turnover in the last year, including a departure that vacated a large share of space and triggered restrictions on tenant improvement funds. Sponsors are using reserves to cover operating shortfalls while they finalize repositioning plans; reported current occupancy for that asset is near 60%.
Platform growth, partnerships and geography
RXR says it owns and manages over 30.5 million square feet of commercial space and roughly 9,800 multifamily units. The firm’s footprint spans New York and several fast-growing U.S. markets, including Phoenix, Denver, Dallas, Raleigh and Tampa. RXR has also expanded its origination and servicing capabilities in recent years by taking stakes in credit platforms and hiring senior dealmakers focused on equity capital markets and business development.
Data and reporting notes
Select market and reference data for this report were provided by ICE Data Services and FactSet.
Frequently Asked Questions
What exactly is RXR’s apartment-credit program?
The program is an expanded partnership with Liberty Mutual to provide up to $1 billion in capital for apartment-related loans, focusing on senior loans, construction financing and flexible preferred equity to support developers and owners facing refinancing stress.
Why are lenders stepping back from multifamily loans now?
Higher interest rates and tighter underwriting since 2022 have reduced some banks’ willingness to lend. Many large multifamily loans made in 2021–2022 are now coming due, creating refinancing pressure and opening space for private credit providers.
Does RXR already have credit experience?
Yes. RXR has a growing multi‑billion credit platform, has originated over $1 billion in loans recently, and has backed earlier bond transactions with institutional insurers.
How does this affect RXR’s office holdings?
The firm is simultaneously wrestling with office-market stress, including foreclosure outcomes and loan defaults on several assets, while also investing to reposition large Midtown properties and secure long-term leases at some towers.
Who is backing the program?
Liberty Mutual Investments is a primary backer and has partnered with RXR since 2010. The insurer manages more than $100 billion in investments.
Where does the data in this story come from?
Market and reference data used in this reporting include material from ICE Data Services and FactSet.
Key features at a glance
| Feature | Detail |
|---|---|
| Capital committed | Up to $1 billion in apartment loans (senior debt, construction, preferred equity) |
| Lead backer | Liberty Mutual Investments (partner since 2010; >$100B under management) |
| Credit leadership | New executive role created to run real estate credit, with hires from large banking and investor platforms |
| Recent origination | More than $1 billion in loans originated last year; plans to scale in 2025 |
| Office repositioning | Acquired 49% stake in a major Midtown tower with >$300M planned upgrades; other assets face foreclosure or loan modification |
| Market data partners | ICE Data Services and FactSet provided select data |
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
