- RXR purchased 590 Madison Ave., a 1M SF, 42-story Class A tower, for $1.08B from the State Teachers Retirement System of Ohio.
- The transaction is Manhattan’s largest office deal since March 2022 and the biggest “full asset, non-user driven” acquisition since 2018.
- RXR partnered with Elliott Investment Management and secured financing from Apollo Global Management, highlighting its strategy to acquire trophy properties at discounted valuations amid a bifurcated office market.
In the biggest Manhattan office sale in more than three years, RXR has acquired 590 Madison Ave., a 1M SF Class A tower formerly known as the IBM Building, for $1.08B. According to CoStar, the deal underscores renewed demand for trophy office properties in prime New York locations.
A Record-Setting Transaction
The acquisition marks the largest office deal in Manhattan since March 2022, when Blackstone purchased a 49% stake in One Manhattan West at a $2.85B valuation. RXR calls it the largest “full asset, non-user driven” acquisition since 2018.
The Details
The 42-story property, located in the Plaza District, is home to tenants such as Apollo Global Management, Tiger Management, Louis Vuitton, and Bucherer. Apollo signed a 96,000 SF lease in April, part of over 300,000 SF of recent leasing activity. The building boasts prime retail exposure and recently underwent more than $100M in upgrades, including the $400M-plus Madison Avenue Club, a 21,000 SF amenity suite.
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Strategic Move
RXR said the purchase of the IBM Building aligns with its “office recovery strategy,” targeting high-quality, well-located properties sold by institutions reducing office exposure. The firm aims to capitalize on strong demand for Class A space in Manhattan, where supply is shrinking. Financing came through a senior mortgage from Apollo Global Management, with Elliott Investment Management as a partner.
Market Context
According to CoStar, the Plaza District and nearby Grand Central market are outperforming, with leasing volumes near pre-pandemic levels. Trophy properties near major transit hubs are drawing competitive demand. RXR also announced an expanded partnership with Liberty Mutual Investments to target $1B in credit deployments for senior loans and construction financing.
What’s Next
With leasing momentum strong and top-tier office supply limited, RXR’s acquisition signals confidence in Manhattan’s trophy office sector. The deal may set a precedent for further large-scale office transactions in the city’s most prestigious districts.
