RXR and Ares Management have partnered to create a $500 million joint venture to buy distressed office properties in New York City.

“Ares and RXR believe the office market isn’t dead — it is evolving, and we believe the joint venture will be able to provide flexible capital and resources to the market,” says David Roth, partner and co-head of Ares U.S. Real Estate.

The $500 million venture was seeded by existing funds of Ares Management. The joint venture mandate is broad and designed to be flexible to support dislocated office assets through a variety of debt and equity structures, which could include buying debt from existing lenders, providing gap capital and buying buildings. The venture has the potential to scale over time.

The joint venture will seek to invest in well-located, class A office buildings