$1 Billion Power Play: RXR and Liberty Just Made Their Boldest Bet Yet on U.S. Apartments

New York-based RXR is ramping up its credit ambitionswith backing from Liberty Mutualto seize what could be one of the most overlooked financing opportunities in U.S. real estate. The two firms are expanding their long-running partnership to deploy up to $1 billion into apartment loans, zeroing in on senior debt, construction loans, and flexible preferred equity. The timing isn't accidental. A wall of multifamily loansmany originated in 2021 and 2022is coming due just as refinancing becomes harder to secure. RXR's CEO Scott Rechler sees this not as a headwind, but as a "generational opportunity" to step in where traditional lenders are pulling back.

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This move follows a string of credit plays by RXR, including a $250 million bond raise backed by Liberty and New York Life, and the recruitment of JPMorgan (NYSE:JPM) and H.I.G. alum Steven Schwartz to lead the firm's credit business. RXR originated over $1 billion in loans last year and is positioning to scale that several times over in 2025. The expansion isn't just about scaleit's about optionality. Rechler says the new setup allows RXR to offer borrowers more tailored capital solutions, as owners across the apartment market face rising costs and tighter lending conditions.

From an investor's lens, this isn't just another real estate fund ramping up. This is a sophisticated credit strategy designed to plug into the capital vacuum left by risk-off lenders. Liberty Mutual Investments, with over $100 billion under management, has been riding alongside RXR since 2010and doubling down now could signal confidence in the long game. As the refinancing crunch unfolds, RXR's credit arm could become a key player underwriting the next cycle of transitional deals, especially in multifamily markets where flexibility and speed will matter most.

This article first appeared on GuruFocus.

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