RXR Acquires Manhattan 590 Madison Tower for $1.1B

RXR, led by Scott Rechler, has agreed to purchase the office tower at 590 Madison Avenue in Manhattan for nearly $1.1 billion, marking the highest price paid for a Manhattan office property since 2022. The 42-story, 1 million-square-foot building, owned by the State Teachers Retirement System of Ohio, attracted bidding interest from major investors including Blackstone, Tishman Speyer, SL Green Realty, and RFR, with some bidders considering installment payment structures before RXR made a full-price offer. The building, located near Central Park and known as the IBM Building, is undergoing planned upgrades including new amenity spaces and has prominent tenants such as Apollo Global Management, Berkshire Hathaway, and Morgan Stanley. This purchase represents one of the first major trophy office asset sales in New York City this year and follows RXR's recent acquisition of a significant stake in 1211 Avenue of the Americas. The deal was brokered by Eastdil Secured's Will Silverman and Gary Phillips, highlighting the rarity of such an opportunity in a market where properties typically hold for over four decades. This transaction underscores a continuing trend of high-value office property investments in New York City despite recent market challenges.