- 590 Madison Ave. is Manhattan’s first office sale over $1B since 2022.
- Transaction sets a new pricing benchmark for Class A office assets.
- Investor demand stays strong for well-located, high-quality office properties.
- Deal showcases renewed confidence in the New York office market.
Record Office Sale Signals Market Resilience
According to CoStar, New York City’s office market recorded its first billion-dollar deal in more than three years with the sale of 590 Madison Ave. RXR and Elliott Investment Management led the acquisition, making it the largest office transaction since 2022.
The deal highlights the value of well-located Class A properties, even as the office sector continues to face industry headwinds.
Investor Appetite for Quality Remains
The 1M SF tower, formerly the IBM Building, attracted 30–40 bidders, demonstrating robust investor interest. This office sale underscores the ongoing ‘flight-to-quality’ trend, as investors favor premier assets in prime locations such as Manhattan’s Plaza District, the largest US office cluster. The $1,000 PSF price set a clear benchmark for the market. This pricing clarity comes as parts of the office sector begin to find a floor after a stretch of distressed trades reset expectations.
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Strategic Partnership Drives Scale
RXR partnered with Elliott Investment Management, Baupost Group, King Street, Criterion, and Liberty Mutual to form Project Gemini and execute the deal. The partnership delivered the scale and capital required to close the transaction. It also shows that major office sales now demand large capital partners and strong conviction amid market uncertainty.
Amenity-Rich Asset Draws Top Tenants
590 Madison Ave. features expansive 24 KSF floor plates and a year-round glass atrium. It also includes executive parking, a private amenity suite, and a modern fitness center. Moreover, the building attracts top-tier tenants such as Apollo Global Management and LVMH. These firms highlight strong demand for high-quality office space in New York’s recovering market.
