Plaza District, Manhattan, New York, August 25, 2025
News Summary
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.
RXR buys 590 Madison Ave. tower for roughly $1.1 billion in biggest Manhattan office deal in years
A 42‑story Class A office tower at 590 Madison Ave. in Manhattan changed hands in a deal valued at about $1.08 billion–$1.1 billion. The buyer was real estate investment firm RXR, which partnered with Elliott Investment Management on the acquisition. The purchase was financed with a senior mortgage provided by Apollo Global Management. The seller was the State Teachers Retirement System of Ohio, which had owned the building for nearly 30 years.
Top takeaways
The tower is a roughly 1‑million‑square‑foot asset, widely known as the former IBM Building, and sits in the Plaza District on Madison Avenue near East 56th and 57th streets. The transaction marks the largest Manhattan office purchase in more than three years and is the highest office sale recorded in the city since a nearly $2 billion purchase in 2022 of another high‑profile tower. Industry observers are treating the deal as a key sign that demand for top‑tier office space in Manhattan is returning.
Building condition, tenants and leasing
The property underwent more than $100 million of capital improvements and has benefited from recent leasing momentum. RXR reported the building secured more than 300,000 square feet of new leases in recent months, including a large agreement with Apollo Global Management reported at roughly 96,000–100,000 square feet, bringing overall office occupancy to about 87%. Named office tenants include Apollo, Tiger Management and Louis Vuitton.
The ground floor features high‑street retail exposure and includes luxury jeweler Bucherer. The future of nearly 28,000 square feet of retail previously occupied by an auction house on the Madison Avenue side is uncertain; that space will be vacated next year and is currently being marketed. Market insiders note that in today’s strong market for luxury retail, a high‑profile vacancy on Madison Avenue can be an asset for lease or repositioning.
Major capital and amenities
As part of the recent work, the tower added an expansive amenity package, including a reported $400+ million, 21,000‑square‑foot suite called the Madison Avenue Club. The overall upgrades and recent leasing activity helped the tower rebound after it lost a long‑term anchor when its major tenant relocated two years earlier.
Financing, advisors and deal structure
The purchase was funded with a senior mortgage from Apollo Global Management. RXR teamed with Elliott Investment Management on the equity side. Newmark advised RXR on equity capital for the transaction. The seller was represented by Eastdil Secured, with brokers who marketed the property on the sellers’ behalf. Broker teams and advisers on both sides were active in closing the sale.
RXR strategy and market meaning
RXR framed the acquisition as part of an Office Recovery Strategy focused on buying Class A and trophy offices at discounts to previous peak values, aiming to hold these assets for the long term as high‑quality Manhattan office supply tightens and demand gathers. The company also disclosed an expanded partnership with Liberty Mutual Investments to deploy $1 billion for credit opportunities, including senior loans and construction financing, signaling a broader push into office‑sector lending and repositioning.
Market context and other notable deals
The purchase was flagged as the most significant office tower buy in the borough since a nearly $2 billion sale in 2022. The week around the closing also saw another large Manhattan deal: a developer closed on a $810 million purchase of a 33‑story rental tower at Fifth Avenue and East 61st Street, with plans to replace the existing building and develop new condos. That project could require relocating more than 200 apartment tenants and drew attention for record pricing for a building of that scale.
Notes on the transaction and closing
Some market sources characterized the 590 Madison sale as a distressed or opportunistic transaction; RXR described the acquisition as fitting its strategy of acquiring trophy assets at meaningful discounts. The building had been managed by a long‑time management firm before the sale and had been listed on the market after the pension fund decided to explore a sale. Industry participants say the limited supply of top‑quality Manhattan office space and renewed leasing interest are driving renewed investor focus on marquee addresses.
Author: Diana Sabau — Date: August 25, 2025 — Section: Commercial Real Estate News — Views: 0
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Frequently Asked Questions
What was purchased?
A 42‑story Class A office tower at 590 Madison Ave., about 1 million square feet and formerly known as the IBM Building.
How much did RXR pay?
The purchase price was reported at roughly $1.08 billion to $1.1 billion.
Who sold the building?
The State Teachers Retirement System of Ohio was the seller and had owned the property for nearly 30 years.
Who financed and advised the deal?
Financing included a senior mortgage from Apollo Global Management. RXR partnered on equity with Elliott Investment Management; Newmark advised on equity capital for the buyer, and Eastdil Secured represented the seller.
What is the building’s occupancy and who are major tenants?
Recent leasing pushed occupancy to about 87%. Major tenants include Apollo Global Management, Tiger Management and Louis Vuitton. Ground‑floor retail features tenants such as Bucherer.
Why does this deal matter for the Manhattan office market?
It is the largest Manhattan office acquisition in more than three years and the first billion‑plus office tower sale of its kind since 2022, signaling renewed investor interest in high‑quality office properties.
Key deal features
| Feature | Detail |
|---|---|
| Asset | 590 Madison Ave. — 42 stories, ~1,000,000 sq ft (former IBM Building) |
| Price | $1.08B–$1.1B |
| Buyer | RXR (partnered with Elliott Investment Management) |
| Seller | State Teachers Retirement System of Ohio |
| Financing | Senior mortgage from Apollo Global Management |
| Advisers | Eastdil Secured (seller), Newmark (equity adviser to buyer) |
| Occupancy | ~87% after recent leases |
| Major tenants | Apollo Global Management, Tiger Management, Louis Vuitton; Bucherer at retail |
| Capital work | >$100M in upgrades; includes a reported $400+M, 21,000‑sq ft amenity suite |
| Strategic note | RXR Office Recovery Strategy; expanded Liberty Mutual Investments credit pact to deploy $1B |
Deeper Dive: News & Info About This Topic
Additional Resources
- New York Post: Midtown showing strength with sale of apartment building, office tower
- Wikipedia: 590 Madison Avenue
- ConnectCRE: 590 Madison Ave listed for sale with ask of $1.1B
- Google Search: 590 Madison Ave RXR
- CommercialCafe: RXR $1 billion 590 Madison acquisition
- Google Scholar: 590 Madison Ave RXR
- Bisnow: Lender takes RXR’s 340 Madison Ave at auction
- Encyclopedia Britannica: RXR 590 Madison (search)
- Crain’s New York Business: 590 Madison goes on sale for roughly $1.1B
- Google News: 590 Madison Ave RXR
Author: Construction TX News
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