RXR characterized its 2025 acquisition of 590 Madison Ave. in partnership with Elliott Investment Management as “one of the most strategic and consequential office transactions in recent history.”
The purchase of the trophy 1-million-square-foot Class A tower previously known as the IBM Building marked not only the city’s first office sale topping $1 billion since 2022 but also established a “critical pricing benchmark” for Class A office stock at a moment when “skepticism surrounding the office sector was at its peak,” RXR said.
The transaction also reaffirmed the enduring value of Manhattan, and in particular the Plaza District, the largest U.S. office cluster, and showcased a rebounding New York office market, with investor appetite remaining strong for well-located, top-tier office properties amid the ongoing “flight-to-quality” trend.
A critical component of the 590 Madison transaction involved a sophisticated investment partnership: RXR collaborated with Elliott Investment and created “Project Gemini,” a capital platform made of RXR, Baupost Group, King Street, Criterion and Liberty Mutual, to provide the scale and financial strength required for a transaction of this magnitude.
The transaction required conviction in the face of extraordinary market dislocation, RXR said. Early bidding rounds attracted 30- to 40 competitors.
The deal earned a 2026 CoStar Impact Award, as judged by a panel of real estate professionals with knowledge of the local market.
About the project: The building features expansive, virtually column‑free 24,000-square-foot floor plates and a glass‑enclosed atrium open year-round at the street level through a public‑private partnership.
The property also includes a private amenity suite offering luxury lounges, food and beverage service, and conferencing facilities, as well as a rare executive parking garage and a fitness center. Major tenants include Apollo Global Management; American Securities; Tiger Infrastructure; Crestview; LVMH, and Schonfeld Strategic Advisors.
What the judges said: Ron Cohen, chief sales officer at Besen Partners, said the deal, valued at about $1,000 per square foot, “showed that the office sector is back.”
Josh Wein, managing director at RAL Cos., said the sale “was the most consequential transaction of 2025. … This $1.1 billion transaction single-handedly reaffirmed investor confidence in the Plaza District and established a new pricing benchmark for Class A assets during a period of peak market skepticism.”
They made it happen: Scott Rechler, chairman and CEO, RXR; Michael Maturo, president, RXR; Jason Barnett, vice chairman and chief legal officer, RXR; Todd Rechler, chief construction and development officer, RXR; David Frank, senior executive vice president and general counsel, RXR; Frank Pusinelli, chief administrative officer and head of office, RXR; William Elder, executive vice president and managing director, RXR; Russell Young, executive vice president, investment management, RXR, and Elijah Rechler, senior vice president, corporate development and strategic initiatives, RXR.
CoStar Senior Market Manager Grant Hunt contributed.