Rithm Capital is making a big bet in the office sector in two major coastal cities. The asset manager, along with joint venture partners, is planning to pour about $250 million into capital improvements across an office portfolio that’s managed by its subsidiary, Elecor Properties.

The entity was formerly known as Paramount Group, which just made the brand change effective this week. Elecor manages trophy office buildings in both New York and San Francisco.

The goal for Rithm under the capital improvement plan is to transform the office portfolio “into an operating platform built for the next evolution of the workplace,” while attracting talent and elevating productivity.

For San Francisco, one is One Front Street, with work being done to redesign the lobby with a cafe, while adding second-floor amenity space and modernizing the elevator. The other is One Market Plaza, which calls for a sky bar on the seventh floor, an executive lounge, a rooftop deck and improvements to the lobby and ground floor.

“In both New York and San Francisco, companies are choosing to elevate the quality of their real estate to enhance collaborative culture, energize their teams and drive productivity,” Peter Brindley said in a statement, who is continuing his role of executive vice president and head of real estate under Elecor.

“Rithm recognized the strength of our team and the trophy-grade quality of our portfolio, and their capital commitment allows us to go even further. We’re enhancing our buildings to continue delivering a modernized, differentiated experience, so the companies and employees within them get more from every day at work.”

The investment comes after Rithm reported a record amount of leasing across its total office footprint, with signings in 2025 exceeding 1.74 million.