Trophy 42‑story office tower at 590 Madison Avenue after capital upgrades and recent leasing momentum.
Plaza District, Manhattan, New York, August 25, 2025
RXR, in partnership with Elliott Investment Management, purchased the 42‑story Class A office tower at 590 Madison Ave for roughly $1.08–$1.1 billion. The acquisition, financed with a senior mortgage from Apollo Global Management and advised by Newmark and Eastdil Secured, is the largest single office building purchase in Manhattan in several years. The roughly 1 million‑square‑foot tower has seen more than $100 million in upgrades, including a 21,000‑sq‑ft amenity suite, and recent leasing has lifted occupancy to about 87%, underscoring demand for trophy Manhattan office assets as part of RXR’s Office Recovery Strategy.
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RXR has acquired the 42‑story Class A office tower at 590 Madison Ave. in Manhattan for roughly $1.1 billion, marking the largest single office building purchase in the borough in more than three years. The deal, reported at a purchase price of about $1.08 billion in some accounts, represents the biggest office sale in New York City since a nearly $2 billion transaction in 2022.
The acquisition was executed as a partnership between RXR and Elliott Investment Management and was financed with a senior mortgage provided by Apollo Global Management. The seller was the State Teachers Retirement System of Ohio, which had owned the building for nearly 30 years after buying it for about $202 million.
Advisors and brokers included a team from Eastdil Secured representing the seller and a Newmark team advising RXR on equity capital. The purchase price was slightly below the pension fund’s reported asking figure of roughly $1.1 billion.
The tower, long known as the former IBM Building and described as roughly 1 million square feet, sits in the Plaza District on Madison Avenue between East 56th and 57th streets. The building has completed more than $100 million in renovations, including a new amenity suite reported at over $400 million in value and spanning about 21,000 square feet, marketed as the Madison Avenue Club. Ground‑floor retail benefits from high‑street exposure with tenants such as a luxury jeweler among the retail roster.
The building has drawn more than 300,000 square feet of new leases in recent months. A sizeable recent lease with Apollo Global Management — reported in different accounts at about 96,000 to 100,000 square feet — pushed office occupancy to roughly 87%. Other named tenants include Tiger Management and Louis Vuitton. A roughly 28,000 square foot retail space previously occupied by a well‑known auction house will become available next year, and that vacancy is being marketed through a major retail brokerage. Industry sources noted that, in the current luxury retail market, such a high‑profile vacancy can be treated as an asset.
Industry watchers view the purchase as a sign of renewed confidence in prime Manhattan office assets. RXR framed the acquisition as part of an Office Recovery Strategy focused on buying Class A and trophy properties at significant discounts to peak valuations and holding them as long‑term winners as the supply of high‑quality office space compresses and demand improves.
Analysts point to recent and concurrent high‑profile transactions as confirmation of resurgent activity, including a separate roughly $810 million purchase of a 33‑story rental tower nearby that is slated for demolition and redevelopment into a super high‑end condo project. That adjacent transaction has drawn attention for its pricing and redevelopment plans, and it highlights the strength of prime locations on and near Fifth Avenue and 57th Street.
The tower had taken a performance hit when a major tenant relocated two years ago, but following the capital upgrades and recent leasing, it rebounded into demand for trophy‑quality Midtown addresses. Some market participants characterized the sale as a distress‑style opportunity for the seller, while RXR framed it as consistent with its strategy to acquire top‑tier assets at discounts to prior peak values.
The financing structure featured a senior mortgage from Apollo Global Management. Equity was sourced through RXR’s partnership with Elliott, and RXR also disclosed an expanded partnership with Liberty Mutual Investments to deploy about $1 billion for credit opportunities that include senior loans and construction financing. Eastdil Secured handled the seller representation and Newmark acted as equity capital adviser to RXR.
The building’s prior manager was a well‑known private owner and operator in the city. The future of certain high‑visibility retail spaces remains to be determined as tenants relocate and retail strategies evolve around Midtown foot traffic and luxury demand.
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The 42‑story Class A office tower at 590 Madison Ave. was purchased by RXR in partnership with Elliott Investment Management.
The deal was reported at about $1.08 billion in some reports and roughly $1.1 billion in others.
A senior mortgage for the acquisition was provided by Apollo Global Management, with equity capital advised by Newmark.
The building is approximately 1 million square feet and is located in the Plaza District on Madison Avenue between East 56th and 57th streets.
The tower underwent over $100 million in capital upgrades, including a large amenity suite of about 21,000 square feet, and has attracted more than 300,000 square feet of new leases, lifting occupancy to roughly 87%.
The seller was the State Teachers Retirement System of Ohio, which had owned the asset for nearly three decades.
| Feature | Detail |
|---|---|
| Buyer | RXR (partnered with Elliott) |
| Seller | State Teachers Retirement System of Ohio |
| Location | 590 Madison Ave., Plaza District (East 56th–57th) |
| Building size | Approximately 1 million sq ft |
| Stories | 42 |
| Purchase price | About $1.08B–$1.1B |
| Financing | Senior mortgage from Apollo Global Management |
| Recent capital investment | Over $100M in upgrades, including a ~21,000 sq ft amenity suite |
| Occupancy | Approximately 87% after recent leasing |
| Notable tenants | Apollo Global Management, Tiger Management, Louis Vuitton, luxury retail tenants |
| Strategic context | Part of RXR’s Office Recovery Strategy and larger credit partnership activity with Liberty Mutual Investments |
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