Strategic Partnership Targeting $1 Billion of Credit Deployments
LMI Leads RXR’s $250 Million Investment Grade Bond Financing
RXR, an owner, operator, and developer of real estate, and Liberty Mutual Investments (“LMI”), the investment firm for Liberty Mutual Group (“Liberty”), today announced the expansion of their long-term strategic partnership. As part of this expansion, the strategic partnership will target $1 billion of credit deployments across the capital stack, including senior loans, subordinate financing, construction financing, and flexible preferred equity, positioning RXR’s platform for continued growth in partnership with prominent global institutional investors. LMI is also serving as the lead investor in RXR’s $250 million investment-grade corporate bond financing.
RXR and LMI will deliver credit solutions across defined investment strategies, focusing on financing opportunities for multifamily property assets nationwide through three core approaches:
- Gap financing – addressing capital structure shortfalls;
- Construction financing – leveraging RXR’s in-house development and construction expertise; and
- Platform and portfolio financing – structuring complex, cross-collateralized transactions.
LMI structured and led a $250 million investment-grade bond financing for RXR’s management company, with participation from New York Life. The loan is collateralized by diversified revenue streams from RXR’s property management, asset management, development, and credit business, which manages investments with a gross asset value of $17.4 billion.
The LMI–RXR partnership commenced in 2010 and has since expanded into a diverse range of real estate investments and credit strategies. LMI’s up to $1 billion commitment will help RXR grow its existing platform and pursue financing opportunities for multifamily property assets nationwide.
“We’re honored to expand our long-standing partnership with Liberty Mutual Investments, whose commitment is a strong endorsement of RXR’s credit platform,” said Scott Rechler, Chairman and CEO of RXR. “The market is undergoing a significant evolution, creating some of the most compelling opportunities we’ve seen in years. RXR’s vertical integration and operating expertise provide a distinct advantage in sourcing investments and managing risk. With a wave of low-interest loans maturing, we’re well-positioned to step in and deliver strong, risk-adjusted returns for our investors.”
“We’re proud to deepen our 15-year strategic relationship with RXR,” said Vlad Barbalat, President and Chief Investment Officer, Liberty Mutual Investments. “This commitment reinforces the breadth and strength of LMI’s platform in providing a diverse array of solutions across the capital structure to build and scale enduring businesses side-by-side with our strategic partners.”
“LMI’s keen understanding of RXR’s multi-faceted Real Estate Platform allowed for a customized and creative corporate bond financing solution that will uniquely support management’s execution of its strategic growth initiatives,” said Michael Maturo, President of RXR. “In today’s volatile financing markets, we are elated to have LMI and New York Life as both highly respected investors and bondholders.”
LMI invests more than $100 billion of long-term capital globally across its integrated platform on behalf of Liberty. The stable funding base enables LMI to be a true end-to-end solutions provider that can deploy flexible capital, navigate market shifts, and make long-term commitments to support its partners’ evolving needs.
RXR’s platform benefits from extensive expertise in real estate investment, asset management, construction and development, and property management. This positions the firm as a solutions-driven partner capable of optimizing development, improving operations, and fully managing projects when needed. RXR’s credit platform is led by Steven Schwartz, a highly experienced senior executive with over 30 years of experience in real estate credit. He was previously co-head of the commercial real estate and mortgage-backed securities groups at J.P. Morgan and most recently served as managing director and co-head of H.I.G. Realty Credit Partners. RXR executed over $1 billion in loan originations in 2024.
