NEW YORK | 590 Madison Ave | FT | FLOORS

[NYguy]

Saw that this was being marketed for over a billion dollars, but didn't know that it was as a development site.....sure there will be a lot of opinions on this one.


https://www.bisnow.com/new-york/news/con...on-a-tiny-patch-of-madison-avenue-128669

'Better Than Billionaires' Row'? Why NYC's Top Developers Are All-In On A Tiny Patch Of Madison Avenue





March 26, 2025
Sasha Jones

On just five blocks of Madison Avenue, a multibillion-dollar development battle is brewing.

Within a matter of months, Extell Development and Related Cos. have set in motion plans for ultra-luxury skyscrapers on the eastern corners of 60th and 59th streets. The developers are known to be aggressive, being responsible for shaping Billionaires’ Row and Hudson Yards, but their investments are just the start of the area’s rebirth.

Extell and Related might be the earliest, biggest movers, but they are far from alone. Across the avenue, Ashkenazy Acquisition Corp. is contemplating the future of the shuttered Barneys store, a Madison Avenue staple.

A pension fund last month reportedly tapped Silverman's team at Eastdil to market 590 Madison Ave. for $1.1B.

“The location is perfect,” Ariel Property Advisors President and founder Shimon Shkury said. “Actually, I personally think the location is probably better than Billionaires’ Row, in a way.”

The bidding war in the Plaza District was kicked off by luxury retailers on Fifth Avenue aiming to choke out competition and strengthen their brand dominance.

At the end of 2023, Prada shelled out $853M for two buildings at 720 and 724 Fifth Ave., and Kering, the parent company of Gucci and Balenciaga, splurged nearly $1B on 715-717 Fifth Ave. Rolex is also building a new 28-story headquarters and flagship at 665 Fifth, and Chanel and LVMH are reportedly going head-to-head in negotiations for 745 Fifth.

And other sales are in the works. This week, Bloomberg reported that Naftali Group entered a contract to buy 800 Fifth Ave. for more than $800M, a price and buyer that suggest a luxury condo tower could be in the works.

On Madison Avenue's eastern flank, titans of finance have piled into offices on Park Avenue, where availability is among the lowest in the world. JPMorgan Chase and Citadel are building new towers for themselves, and private equity juggernauts are battling for whatever top-end space is left, routinely paying more than $150 per SF.

Those investments in office and retail have consolidated New York City’s high net worth individuals into what is, more or less, a single 1,000-foot radius around one small section of Madison Avenue.

655 Madison Ave.

Starting in October, Gary Barnett’s Extell spent more than $260M to acquire the office building at 655 Madison and the adjacent buildings at 33-39 E. 60th St. The 200K SF tower is in the process of being razed, while demolition permits have been filed for four smaller buildings around the corner.

Holdover petitions to remove one resident and two restaurants, Il Mulino and Philippe Chow, were filed in civil court early last year, though a waiter at the upscale Chinese restaurant told Bisnow last week he had no knowledge — and a newfound fear — that a condo development could result in him losing his job.

Extell didn't respond to Bisnow’s request for comment but seems to be moving ahead on its Madison Avenue scheme. Plans filed before the purchases of 33-39 E. 60th describe a new 37-story mixed-use development with retail, office, hotel and residential.

Industry insiders speculate that the 37-story tower may not be the final vision.

“It's not [Barnett's] style. Based on analyzing work that he's done for so long, that just doesn't seem like what he does,” said Duane Burress, who specializes in land and air rights valuations.

A lawsuit filed this week has bolstered that hypothesis. The buyer of an $80M unit at 520 Park Ave. sued Zeckendorf Development, claiming that the penthouse was sold without warning that Extell has “secret plans” to build a skyscraper on Madison Avenue that “will tower over” and block the views of the existing 64-story building.

625 Madison Ave.

A block to the south, demolition crews donning gas masks are swarming the corner of 59th Street and Madison, where Related plans to erect a 68-story residential supertall. It is expected to yield 101 condo units, along with an array of amenities, restaurant space and two floors of retail.

“625 Madison Avenue holds a special place in Related’s history as our former corporate headquarters for nearly two decades,” a spokesperson for the firm told Bisnow in a statement. “We look forward to starting a new chapter for the building by delivering exceptional hospitality, luxury residences, and flagship retail in one of the most sought-after areas in New York City.”

Expected to be completed in 2032, Citadel CEO Ken Griffin, Vornado and Rudin have begun the approval process for 350 Park Ave., an office tower where the hedge fund has already committed to 800K SF. That site is a 10-minute walk away from Related’s site, according to Google Maps. One Vanderbilt, a fully occupied, 1.7M SF office that opened in 2020, is less than 20 minutes away.

Newly constructed condos in the area surrounding the 57th-to-61st-street corridor have an average sellout of over $4,600 per SF. Certain developments, like the Aman Residences at 730 Fifth Ave., sell for as much as $8K per SF, according to market data analysis provided by Ariel Property Advisors. The last sponsor unit at the Aman sold for $66M in January.

“If I'm working at One Vanderbilt or 550 Madison, I probably can live [nearby] in a luxury apartment building,” Shkury said. “So, I work in the best building in the world with the best people in the world. I live in the best location in the world with all of the amenities I need.”

660 Madison Ave.

Contrasted with the pounding sounds of jackhammers, the former Barneys store at 660 Madison Ave. sits quiet. In the window of what was once a small salon, abandoned bottles of hair products remain on display, gathering dust.

The nine-story retail condo, owned by Ashkenazy, was vacated by the department chain in 2020. It was briefly occupied by a Louis Vuitton pop-up in 2022 but has otherwise remained empty. Still, the developer has clung to the space.

“Barneys is the best piece of real estate on Madison Avenue,” Ben Ashkenazy said last year. “I’ve chosen to keep it vacant for a reason, because one big retailer is going to buy it.”

An empty building could be the perfect opportunity to compete with Extell and Related — and Ashkenazy has some added motivation. He once owned the ground under 625 Madison Ave. Ashkenazy’s partner Michael Alpert previously called the land “absolutely one of the best development sites in Manhattan.”

But Ashkenazy lost the site to SL Green in August 2023 following a combative foreclosure process. Related paid $633M for the property a few months later.

Now, 660 Madison Ave. could go up against the new construction across the street, if Ashkenazy or another developer so chooses, insiders say. A new tower on the site may even be able to block views of 625 Madison, harming its value.

[NYguy]

For years known as the IBM Building...

[Crawford]

This sounds pretty intriguing. We could be getting a whole new Billionaire's Row.

[ssh]

Would be a shame if they demolished that perfectly fine building.

[NYguy]

I would prefer they didn’t. But we’re in strange times, and money talks. It probably wouldn’t have been conceivable 10 years ago, but look around. Lot of variables here though.

[UrbanImpact]

This would be a sad demo as I like the corporate 1980s vibe. I remember having the IBM Building in Sim City 2000 using the mod. I believe JM Garcia created it, if that rings a bell for anyone.

[NYguy]

Looks like the listing for some of the space was taken down, or maybe moved somewhere else.

https://www.loopnet.com/Listing/590-Madison-Ave-New-York-NY/3938619/

[NYguy]

https://www.instagram.com/turnerconstructioncompany/p/DBPYvDES1yh/?img_index=1

In 1983, Turner completed 590 Madison Avenue, a prominent structure in Midtown Manhattan.

Also known as the @IBM Building, this 41-story skyscraper is distinguished by its unique pentagonal design and reflective glass façade.

Designed by Edward Larrabee Barnes, the building features a spacious public atrium, offering an open and modern space within the bustling urban landscape of Madison Avenue.

Interestingly, the IBM Building was one of the first to introduce green spaces within its atrium, a trend that would later become common in New York skyscrapers.

[NYguy]

https://commercialobserver.com/2025/02/590-madison-avenue-for-sale-1-billion/

Midtown’s 590 Madison Avenue Hits the Market at Roughly $1.1B


By Isabelle Durso
February 18, 2025

Midtown’s 41-story office tower at 590 Madison Avenue, long known as the IBM Building, is on sale at roughly $1.1 billion.

.....If the building sells near its asking price, it could end the two-year drought the city has seen in billion-dollar investment sales after Google’s $2.1 billion purchase of 550 Washington Street, SL Green Realty’s $1.8 billion acquisition at 245 Park Avenue and Blackstone’s $1.4 billion purchase of a stake in 1 Manhattan West closed in 2022. Last year’s largest investment sale — Kering’s $963 million deal to buy 717 Fifth Avenue — fell just shy of that mark.

The news comes during a year of big moves for New York City’s largest office buildings, including Citadel founder Ken Griffin’s plans to build a 62-story office tower in Midtown East at 350 Park Avenue along with Vornado Realty Trust and Rudin.

[NYguy]

Meanwhile, space is still available….


https://commercialobserver.com/2025/03/apollo-global-mangement-lease-590-madison-avenue/

Apollo Global Negotiating 100K-SF Lease for Four Floors at 590 Madison


BY LOIS WEISS
MARCH 31, 2025

Apollo Global Management (APO) is negotiating to bring its Bryant Park employees nearer its 9 West 57th Street mothership with a new deal for four floors at 590 Madison Avenue totaling just under 100,000 square feet, Commercial Observer has learned.

The group is now at Salesforce Tower at 1095 Avenue of the Americas — also known as 3 Bryant Park — where Apollo’s been subleasing 71,291 square feet from MetLife since 2018.

A portion of the land under that building is also owned by STRS Ohio, which is once again exploring a sale of the entire tower through Will Silverman and Gary Phillips of Eastdil that had an expected price tag of $1.1 billion. Market sources say that pricing was ambitious and may end up closer to $800 million to $900 million. Additionally, STERS Ohio may pool some assets for a larger portfolio sale.

[Busy Bee]

I do not see this tower getting demolished. I think that will just be a bridge too far for any party considering it's relatively young age and size. A much more likely and reasonable outcome is it gets a 21st century inside and out makeover by a firm like MdeAS to make it bright and shiny again. Maybe engineers would say it's possible to even add 10-15 floors especially if it has some sort of cut-out or void for a sky terrace.

[DCReid]

Originally Posted by Busy Bee

I do not see this tower getting demolished. I think that will just be a bridge too far for any party considering it's relatively young age and size. A much more likely and reasonable outcome is it gets a 21st century inside and out makeover by a firm like MdeAS to make it bright and shiny again. Maybe engineers would say it's possible to even add 10-15 floors especially if it has some sort of cut-out or void for a sky terrace.

I agree, especially if they are leasing apartments for $16,000- 20,000 a month according to the article. I think they will sit on it for a while and rake in the income, and maybe even raise it given the strong rental market in NYC.

[plinko]

Edward Larrabee Barnes was a very good architect among his 70s and 80s contemporaries and it would be a shame to see this particular tower and great sitting space torn down.

[NYguy]

Anything that happens here wouldn’t be in the short term. But anybody who purchases the building at this time will certainly be looking to the future. It’s not a great building, it’s the location, which is why it can get decent rents. But that location is what makes the possibilities for any investor do intriguing.

[NYguy]

Wouldn't expect a residential conversion here at all, but as an example of unexpected, 5 Times Square, one of the symbols of Times Square renewal, will now be converted to over 1,200 apartments.





edenpictures



https://skyscraperpage.com/forum/showpost.php?p=10408369&postcount=21

[Busy Bee]

Probably means the cool blade sign will be coming down since it would shine into tenant apartments like Kenny Rogers Roasters did with Kramer's place.


___

[NYguy]

https://commercialobserver.com/2025/05/590-madison-installment-sale/

Installment Sale on the Table for $1.1B 590 Madison Avenue Deal


BY ANDREW COEN
MAY 8, 2025

The much-anticipated purchase of 590 Madison Avenue — touted as the biggest office sale since 2022 — could be structured as an installment sale, sources familiar with the process told Commercial Observer.

At least one bidder is requesting that the seller, State Teachers Retirement System of Ohio (STRS Ohio), structures its $1.1 billion asking price for the 41-story office tower as a deferred payment sale in which the buyer could pay in installments to meet the heavy $1 billion-plus price tag, sources said.

Bids for the 1 million-square-foot office building were due May 2, with one source indicating it was a two-horse race between RXR and Tishman Speyer. Another source, however, told CO that more than two bidders remain in play.

Blackstone was considered the betting favorite last week to purchase the Midtown office asset against bidders SL Green Realty, Tishman Speyer, RXR and RFR, The Real Deal previously reported.

[NYguy]

A refurbished or redeveloped tower is appetizing as it’s neighbor has done well…


https://nypost.com/2025/05/04/business/5...d-office-location-now-nearly-100-leased/

550 Madison Ave. — maybe Midtown’s most coveted office location — now nearly 100% leased


By Steve Cuozzo
May 4, 2025

A global holding company with $22 billion in managed assets has claimed what might be Midtown’s most coveted, crown-jewel office location.

Aquarian Holdings LP signed a lease with landlord Olayan Group’s 550 Madison Ave. for the landmarked “Chippendale” tower’s 75,000 square-foot, three-level penthouse, Realty Check has learned.

It brings the 750,000 square-foot trophy to about 96% leased.

Olayan bought the pink granite tower for $1.4 billion in 2016 when it was vacant and upgraded it for at least $300 million more. The company redesigned the lower-floors facade and enlarged retail windows under the watchful eye of the Landmarks Preservation Commission. The office floors and lobby were comprehensively re-imagined and systems re-tooled for 21st century tenants.

The tower’s leasing performance has been epic. Since we wrote in November 2021 that 550 Madison was regarded as a “bellwether” for the office market, which was struggling back from the pandemic, some 303,500 square feet of the offices went for more than $100 per square foot — perhaps the city’s highest percentage of C-note deals at a single property.

[ChiND]

If this building is razed, how many square feet could it’s replacement have?

I like the IBM tower and never envisioned it being torn down, but if an iconic, 1,000’+ tall tower could rise here, it would be in serious demand. I could see Blackstone anchoring it.

[NYguy]

Originally Posted by ChiND

If this building is razed, how many square feet could it’s replacement have?

It's currently about a million square feet, which includes the bonus for the plaza. I'm not sure if that's just total size, or zoning size.



https://classicnewyorkhistory.com/history-nycs-ibm-building/

There are not many cities in the world where a 41-story building would be listed as the 89th tallest building in the city. However, there are not many cities like New York City. Built in 1989, the IBM building stands at 41 floors and is located at the corner of Madison Avenue and East 57th Street in the New York City borough of Manhattan. While the building stands mighty tall at 41 floors, it also contains 1,007,420 sq ft of floor area.

They could go the route of 550 Madison (redevelop the current building), or build a newer, larger structure using various means of increasing size, which means it would need to go through ULURP. Or, the changing winds of the immediate area could see something that would allow condos at the top. This is the rare location that offers the best of both scenarios in Manhattan. Whatever the case, I wouldn't expect anything to happen immediately.