RXR has acquired the landmark 590 Madison Avenue office tower in Manhattan’s prestigious Plaza District for nearly $1.1 billion, according to Bloomberg and other media reports. The transaction marks the most expensive office building sale in Manhattan since 2022 and underscores renewed confidence in prime commercial real estate.
The 42-story tower—often referred to as the IBM Building—was sold by the State Teachers Retirement System of Ohio, with Eastdil Secured marketing the property. Brokers Will Silverman and Gary Phillips of Eastdil handled the high-profile transaction.
590 Madison drew interest from a number of major real estate players, including Tishman Speyer, SL Green Realty Corp., Blackstone, RFR, and a prominent European investor. While some bidders explored creative deal structures like installment payments, RXR is reported to have made a full-price, all-cash offer, securing the asset.
Will Silverman, speaking to Bloomberg in February, emphasized the scarcity of opportunities to acquire real estate at this caliber and location: “The average hold period of real estate on the eight corners of 57th Street and Madison Avenue and 57th and Fifth is over 40 years, indicating the rarity of this opportunity.”
With this acquisition, RXR deepens its footprint in one of New York City’s most coveted commercial corridors, signaling enduring investor demand for trophy assets in core markets.
The IBM Building in New York City 590 Madison Ave Picture on Wikimedia by Matthew G. Bisanz
