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New York, NY â August 17, 2025
In one of Manhattanâs most significant commercial real estate transactions in recent years, RXR and joint venture partner Elliott Investment Management have finalized the $1.08 billion acquisition of 590 Madison Avenue, a 43-story office and retail tower located in Midtownâs prestigious Plaza District.
Landmark Deal in a Shifting Market
Originally reported as a pending transaction in May, the sale marks the highest price paid for a Manhattan office property since 2022 and the largest non-user acquisition since 2018. The property, formerly known as the IBM Building, was listed by Eastdil Secured on behalf of the State Teachers Retirement System of Ohio. Eastdilâs Will Silverman and Gary Phillips led the sale process.
The acquisition reflects a strategic move by RXR to capitalize on market dislocation and invest in trophy assets at discounted valuations. RXR CEO Scott Rechler described the building as âone of the highest quality buildings in Manhattan with one of the best locations at 57th Street and Madisonâ.
Financing and Legal Advisory
To support the acquisition, the joint venture secured $785 million in financing from Apollo Global Management. The debt package includes:
- A $650 million senior loan
- A $135 million mezzanine loan
- Approximately $60 million in future funding commitments for tenant improvements and leasing costs
Fried Frank advised Elliott Investment Management on both the joint venture structure and the financing arrangement. The legal team was led by partners Michael Werner and Andrew Ebersbach, with associate Joshua Jun contributing to the transaction.
Property Highlights and Leasing Momentum
The 1 million-square-foot Class A tower has undergone over $100 million in renovations, including the development of the Madison Avenue Clubâa 21,000-square-foot amenity suite offering premium services to tenants. The building features high-street retail exposure and is home to tenants such as Apollo Global Management, Tiger Management, and luxury brand Louis Vuitton.
Recent leasing activity has been robust, with over 300,000 square feet of new leases signed in the past year, including a 96,000-square-foot lease by Apollo in April.
Market Implications
The transaction underscores a broader trend in Manhattanâs bifurcated office market, where demand for well-located, high-quality assets remains strong. Analysts note that trophy properties near transit hubsâsuch as those in the Plaza District and Grand Central areaâare outperforming the broader market, with leasing volumes approaching pre-pandemic levels.
Excerpts from Paul Bubny article on connectcre
