NEW YORK | 590 Madison Ave | FT | FLOORS

[NYguy]

https://therealdeal.com/new-york/2025/05/19/rxr-buying-590-madison-for-close-to-1-1b/

RXR buying 590 Madison for close to $1.1B
First NYC office sale to crack billion-dollar mark since Google parent's 2022 purchase


By Rich Bockmann
May 19, 2025

Scott Rechler’s RXR is buying 590 Madison Avenue for close to $1.1 billion — the most expensive office deal in New York in several years.

Rechler’s company on Friday signed a letter of intent to buy the 1 million-square-foot tower from State Teachers Retirement System of Ohio, the state’s teacher pension fund, sources told The Real Deal.

The price is “closer to $1.1 billion than it is to $1 billion,” said a source familiar with the deal.

There was intense competition for the building — one of the few trophy office properties in the Plaza District — and it drew attention from many of the biggest investors.

Tishman Speyer, Blackstone Group, SL Green and RFR had all been in the mix late in the process. Sources told TRD in April that Blackstone was the odds-on favorite to emerge as a buyer, and there was also a high-net-worth European investor who showed strong interest in buying the building.

[ChiND]

While I like this tower, I’d gladly see it razed if a more iconic structure rose in its place.

[NYguy]

I would expect at least a refurbishment/redevelopment of the existing tower. It’s such a prime location that I wouldn’t rule out plans for a ground up tower, though you woukd probably only do that with a MAJOR tenant in hand.

[ChiND]

Originally Posted by NYguy

I would expect at least a refurbishment/redevelopment of the existing tower. It’s such a prime location that I wouldn’t rule out plans for a ground up tower, though you woukd probably only do that with a MAJOR tenant in hand.

Is this site within the midtown rezoning? If so, what's the maximum square footage it could have if it's rebuilt?

[NYguy]

Originally Posted by ChiND

Is this site within the midtown rezoning?

[ChiND]

Thanks. Do you know how many square feet the new tower could have?

[NYguy]

Originally Posted by ChiND

Thanks. Do you know how many square feet the new tower could have?

Multiply the size of the lot by 18, plus any amount of existing space above 15. Keep in mind the current building also has a plaza bonus.

[The New York Lion]

Originally Posted by NYguy

Multiply the size of the lot by 18, plus any amount of existing space above 15. Keep in mind the current building also has a plaza bonus.

The lot size is 39,200.83 square feet.

That works out to around a 700K square foot building, nearly 300K smaller than the existing structure.

A 1,000' Stern would look nice here.

[NYguy]

56th Street is once again a high security area, and closed off, so I wouldn't expect anything to happen here until at least the next administration.





MAY 26, 2025

[NYguy]

https://therealdeal.com/new-york/2025/06/11/rxr-puts-50-million-deposit-on-590-madison-avenue/

RXR puts down $50M deposit on billion-dollar 590 Madison deal
Rechler’s firm has July 30th deadline to close deal


By Rich Bockmann
June 11, 2025

Scott Rechler has taken one step closer to owning his coveted Madison Avenue trophy.

Rechler’s RXR signed a hard contract for 590 Madison Avenue and put a $50 million deposit down on the Plaza District skyscraper, sources familiar with the sale told The Real Deal.

The company signed a letter of intent about three and a half weeks ago to purchase the building from the STRS Ohio state teachers’ pension fund for close to $1.1 billion. The contract signing is the next step toward finalizing the purchase. The deal is scheduled to close by July 30, though one source said it’s likely to close sometime in the middle of next month.

Once the deal closes, Rechler will finally have his hands on a property he’s been eyeing for quite some time. RXR made a previous offer to buy the former IBM Building, according to sources, though the timing wasn’t clear.

It’s the first New York City office sale to crack the $1 billion mark since Google bought its Hudson Square headquarters in 2022 for $2.1 billion.

[ChiND]

Given Rechler’s ambitions with 175 Park, I can’t even imagine the icon that he would build here. I suspect that he’d need to buy a lot moRe air rights though.

[NYguy]

Originally Posted by ChiND

Given Rechler’s ambitions with 175 Park, I can’t even imagine the icon that he would build here. I suspect that he’d need to buy a lot moRe air rights though.

It’s possible, but doubtful they would do a full ground up rebuild here. At leadt not for office. Mixed-use of office/hotel/residential would make a lot more sense, because they wouldn’t need a huge office component. But the location offers the best of both worlds. Anything that happens would be in the long term.

[ChiND]

It will be interesting to see what happens here.

[NYguy]

Hot property, hot location...

[NYguy]

https://nypost.com/2025/08/17/business/m...sale-of-apartment-building-office-tower/

Scott Rechler’s RXR closed on the $1.08 billion purchase of 1 million square-foot 590 Madison Ave. at East 57th Street, the former IBM Building. It was less than pension fund STRS Ohio’s $1.1 billion asking price, but the first $1 billion-plus purchase of an office tower by a real estate company since before the pandemic. (Alphabet occupied the St. John’s Terminal building before it bought it for $2 billion in 2022).

RXR’s price was also much less than the $1.3 billion that STRS hoped for when it tested the market back in 2018.

One source termed the deal a “distress” sale, a characterization supported by RXR itself. In a statement, it credited its “Office Recovery Strategy” which targets “trophy office properties that can be acquired at significant discounts to peak valuation.”

[ChiND]

I'd ideally like to see an utterly iconic, mixed-use tower rise here, but if Rechler keeps this building, as is, it would at least be nice if he transforms the indoor atrium into something more like what the owners of 550 Madison did.

[NYguy]

I don’t expect them to do anything immediately here, being in the security zone that it is.

[ChiND]

Originally Posted by NYguy

I don’t expect them to do anything immediately here, being in the security zone that it is.

I agree. I think that 56th St should be made into a greenspace.