Trophy 42‑story office tower at 590 Madison Avenue after capital upgrades and recent leasing momentum.
Plaza District, Manhattan, New York, August 25, 2025
RXR, in partnership with Elliott Investment Management, purchased the 42‑story Class A office tower at 590 Madison Ave for roughly $1.08–$1.1 billion. The acquisition, financed with a senior mortgage from Apollo Global Management and advised by Newmark and Eastdil Secured, is the largest single office building purchase in Manhattan in several years. The roughly 1 million‑square‑foot tower has seen more than $100 million in upgrades, including a 21,000‑sq‑ft amenity suite, and recent leasing has lifted occupancy to about 87%, underscoring demand for trophy Manhattan office assets as part of RXR’s Office Recovery Strategy.
A major Manhattan office tower changed hands in a deal that industry observers say is the largest office acquisition in the borough in more than three years. Real estate investment firm RXR acquired the 42‑story Class A tower at 590 Madison Ave. for approximately $1.1 billion (also reported in parts of the coverage as $1.08 billion).
The buyer closed the transaction in partnership with an investment manager and financed the acquisition with a senior mortgage provided by a global asset manager. The seller was the State Teachers Retirement System of Ohio, which placed the one‑million‑square‑foot property — long known as the former IBM Building — on the market after nearly three decades of ownership. The pension fund originally acquired the tower for roughly $202 million.
The purchase was structured as a partnership between RXR and Elliott Investment Management and was financed with a senior loan from Apollo Global Management. Eastdil Secured represented the seller during marketing and sale. A Newmark team advised RXR on equity capital for the purchase, while specific Eastdil brokers were involved in the marketing process on behalf of the pension fund.
The sale is being viewed as the highest price paid for an office tower in New York City since a nearly $2 billion acquisition in 2022, and is widely read as a sign that demand for top‑tier Manhattan offices is reviving. The tower is considered among the biggest trophy assets put on the market since the pandemic and the deal is being followed closely by market participants as an indicator of confidence in prime Midtown product.
The tower sits in the Plaza District on Madison Avenue between East 56th and 57th streets. It has undergone more than $100 million in capital upgrades, including the addition of a large new amenity suite described in reporting as a $400+ million, 21,000‑square‑foot Madison Avenue Club. Recent leasing momentum was cited as a key factor in the sale; RXR reported the building drew more than 300,000 square feet of new leases in recent months.
Named office tenants include Apollo Global Management, Tiger Management and Louis Vuitton. Reporting on recent leases lists one Apollo deal as roughly 96,000 square feet signed in April, while other coverage cites a recent Apollo lease at about 100,000 square feet, either of which helped lift the building’s office occupancy to about 87%.
Ground‑floor retail offers high‑street exposure and includes luxury jeweler Bucherer. A prominent auction house on the Madison frontage is set to vacate and move to another Midtown address next year, leaving nearly 28,000 square feet of retail space now being marketed by a global brokerage. Market sources note that in today’s strong luxury retail market, such a vacancy can be an asset.
RXR said the acquisition aligns with its office recovery strategy of buying Class A trophy properties at discounts to prior peak valuations and holding them as long‑term assets as high‑quality Manhattan supply tightens. The deal was characterized in some reporting as a distress sale; RXR framed it as consistent with a strategy focused on repositioning and leasing premium buildings.
The transaction arrives amid other large Manhattan moves. In the prior week, an investor paid about $810 million for a 33‑story rental tower at Fifth Avenue and East 61st Street and plans to demolish the existing building for a new high‑end condo project, which could require relocating or evicting more than 200 apartment tenants and has prompted tenant legal action in some cases. Those two monumental transactions back to back underscore increased activity at the top of the market.
Observers say the transaction may encourage further large purchases and recapitalizations of downtown and Midtown trophy offices, particularly where recent capital improvements and leasing have improved fundamentals. The mix of core equity partners, bank and nonbank financing, and continued appetite from capital allocators for well‑located, upgraded product is likely to shape deals in the months ahead.
The 42‑story, one‑million‑square‑foot tower at 590 Madison Ave., formerly known as the IBM Building, was sold.
Real estate investment firm RXR purchased the tower in a partnership with Elliott Investment Management for about $1.1 billion, with some reports listing the sale price at $1.08 billion.
The State Teachers Retirement System of Ohio was the seller; it had owned the property for nearly 30 years after buying it for about $202 million.
The acquisition was financed with a senior mortgage from Apollo Global Management, with equity advised by a Newmark team and seller representation by Eastdil Secured.
Office tenants include Apollo Global Management, Tiger Management and Louis Vuitton. Ground‑floor retail includes Bucherer and a large auction house space that will be vacated next year and is being marketed.
The transaction is the largest Manhattan office purchase in more than three years and the biggest price point seen since a nearly $2 billion office acquisition in 2022, signaling renewed investor interest in top‑tier office assets.
| Item | Detail |
|---|---|
| Buyer | RXR (partnered with Elliott Investment Management) |
| Seller | State Teachers Retirement System of Ohio |
| Address | 590 Madison Ave., Plaza District (East 56th–57th) |
| Building | 42 stories, ~1,000,000 sq ft, former IBM Building |
| Sale price | Reported ~ $1.1 billion (also cited as $1.08 billion) |
| Financing | Senior mortgage from Apollo Global Management; equity advised by Newmark |
| Recent capital work | More than $100 million in upgrades; amenity suite reported as $400+ million and 21,000 sq ft |
| Occupancy | About 87% after recent leasing |
| Notable tenants | Apollo Global Management, Tiger Management, Louis Vuitton, Bucherer (retail) |
| Advisers | Eastdil Secured represented seller; Newmark advised buyer on equity capital |
| Related market moves | Recent $810M purchase of 800 Fifth Ave. for condo redevelopment |
, August 25, 2025 News Summary In a Shawneetown ceremony, the state awarded significant grants to…
12 miles southwest of Aquinnah, Massachusetts (federal waters), August 25, 2025 News Summary A federal agency…
Derwood, August 25, 2025 News Summary Construction is progressing at 17700 Muncaster Road as a former…
Abu Dhabi, UAE, August 25, 2025 News Summary The Gulf facility management sector is on a…
Enfield, Connecticut, August 25, 2025 News Summary A suspected burglar hiding inside a Garden Street home…
Multiple construction sites, August 25, 2025 News Summary Construction teams must move beyond paper checklists, siloed…