- RXR has placed a $50M deposit to acquire 590 Madison Ave. from the STRS Ohio pension fund in a nearly $1.1B deal.
- This will be the first NYC office building to sell for over $1B since Google’s $2.1B purchase in 2022.
- The 1M SF Plaza District tower had attracted high-profile bidders, including Tishman Speyer, Blackstone, SL Green, and RFR.
- The transaction is expected to close by mid-July, with Eastdil Secured brokering the deal.
RXR’s Trophy Hunt Nears A Finish Line
RXR, led by CEO Scott Rechler, is close to acquiring the 1M SF office tower at 590 Madison Ave., reports CommercialCafe. The firm has placed a $50M deposit in a deal valued just shy of $1.1B. The property, located in Midtown Manhattan’s Plaza District, has long been on RXR’s radar and would mark the firm’s largest acquisition in recent years.
A Rare Billion-Dollar Deal
If finalized, the transaction would represent New York City’s first office sale exceeding $1B since Google bought its Hudson Square HQ for $2.1B in 2022. The scarcity of trophy assets in top-tier Manhattan locations has made 590 Madison a sought-after prize, drawing interest from real estate giants like Tishman Speyer, Blackstone Group, SL Green, and RFR.
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Competitive Landscape And Final Hurdles
Though buyer hesitation around the price reportedly led to suggestions of installment-based purchases, the process ultimately resulted in an agreement for a full sale. The final contract is expected to be signed soon, with closing targeted for mid-July.
Not RXR’s First Run At The Tower
RXR had previously made a play for the building — originally constructed as IBM’s headquarters — possibly as far back as 2018 or during STRS Ohio’s most recent marketing cycle. Despite the delays, this acquisition marks a strategic win for RXR as it adds another marquee asset to its portfolio.
A Broader Partnership
The deal further strengthens RXR’s ties with STRS Ohio, its co-investor in the Amazon-leased warehouse at 55-15 Grand Ave. in Queens. Earlier this year, RXR also acquired a 49% stake in 1211 Sixth Ave., deepening its presence in Midtown.
Why It Matters
The deal signals renewed investor confidence in Manhattan’s office market, particularly for Class A assets in premier locations. With institutional capital returning to trophy office towers, RXR’s acquisition could help reignite interest in a sluggish office sector.
What’s Next
Once the sale is finalized, RXR is expected to lay out plans for 590 Madison’s future positioning, potentially leveraging its prime location and tenant roster to drive long-term value. All eyes are now on the mid-July closing date.
