Rithm Capital Expands Commercial Real Estate Footprint with Paramount Acquisition

Rithm Capital has finalized its purchase of Paramount Group, Inc., marking a significant expansion of its high-end commercial property holdings. The alternative asset manager's latest move substantially grows its portfolio of premier office assets, with integration efforts for the New York and San Francisco properties already underway under new leadership.

The acquisition was formally completed late Friday. Rithm Capital now controls a portfolio encompassing 13 owned and four managed Class A office buildings, totaling more than 13.1 million square feet of prime space. These assets are primarily located in the key metropolitan markets of New York City and San Francisco.

Leadership of the newly acquired assets has transferred to Rithm Capital effective immediately. Albert Behler, the former Chairman, Chief Executive Officer, and President of Paramount, has departed the company. The integration into Rithm’s vertically integrated business model will be overseen by its CEO, Michael Nierenberg. The Paramount brand will also be gradually phased out in favor of the Rithm name.

In a related move, the managed affiliate Rithm Property Trust Inc. approved a 1-for-6 reverse stock split, scheduled for December 30, 2025. This action is intended to optimize the equity structure following the substantial transaction.

A Strategic Pivot Gains Momentum

The Paramount deal represents a continued strategic shift for Rithm, moving beyond its traditional mortgage-centric operations toward a more diversified asset management profile. Financing for the acquisition was secured through a combination of available cash and a $50 million equity investment from Rithm Property Trust.

Should investors sell immediately? Or is it worth buying New Residential Investment?

This purchase follows closely on the heels of another strategic acquisition, with the Crestline Investors transaction closing on November 30. Combined, these deals have elevated the company’s total managed assets to approximately $102 billion. Investor reaction on Friday was muted, with Rithm's stock (RITM) closing at $11.17, down 0.53% for the session.

Just prior to the deal's closure, management demonstrated confidence in the stability of its cash flow. On December 18, the Board of Directors declared a quarterly cash dividend of $0.25 per share for the fourth quarter of 2025.

Market Focus Shifts to Integration and Value Creation

Attention now turns to the company's ability to extract value from the sizable new office portfolio. Effective management and leasing of the properties are immediate priorities.

Shareholders should note the following key dates:
* December 31, 2025: Record date for the Q4 dividend.
* January 30, 2026: Payment date for the $0.25 per share dividend.
* February 2026: Anticipated release of full-year 2025 financial results, which will provide the first pro-forma look at the integrated operations including both Paramount and Crestline.

Technically, the share price continues to consolidate near the $11.20 level. The market awaits further guidance on synergy targets for the expanded commercial real estate platform, expected in the first quarter of 2026.