- The State Teachers Retirement System of Ohio is marketing 1 MSF 590 Madison Ave. for $1.1B, with Eastdil Secured handling the sale.
- Formerly known as the IBM Building, 590 Madison is one of the largest trophy assets to hit the market since the pandemic.
- The property offers amenities including a fitness center, conference spaces, and a rooftop terrace.
- Manhattan saw 6% more investment in Q4 YoY, with office assets accounting for the bulk of the gains.
The State Teachers Retirement System of Ohio listed 590 Madison Ave. for $1.1B, one of the largest Manhattan office sales since the pandemic, as reported by GlobeSt.
Trophy Tower For Sale
590 Madison Avenue, a 1 MSF mixed-use office and retail property in Manhattan, has been listed for sale for $1.1B, according to Bloomberg. The asset is owned by the State Teachers Retirement System of Ohio, with Eastdil Secured managing the sale.
Notably, this sale is one of the largest trophy office assets to hit the market in NYC since the start of the pandemic.
Previously known as the IBM Building, 590 Madison features a diverse tenant roster, including high-end retail brand Louis Vuitton, private equity firm Consello, and investment firm Tiger Infrastructure.
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Rare Opportunity, Prime Location
Located at the iconic intersection of 57th Street and Madison Avenue, the property offers a unique investment opportunity, as nearby real estate rarely comes to market.
Indeed, Eastdil Secured’s Will Silverman noted that highly desirable properties in this area typically have a holding period of over 40 years, making this a once-in-a-lifetime deal.
The mixed-use property offers high-end amenities, including conference facilities, a fitness center, a parking garage, a rooftop terrace, and a private library and clubhouse, further boosting its appeal to investors.
The Bigger Picture
While overall office investment activity remains subdued, Manhattan saw a boost in investment dollar volume, which rose 6% YoY to $3.3B in Q4, according to a report from Avison Young.
Office transactions were particularly strong, accounting for significant gains in both investment volume (86%) and transactions (98%). Retail investment also saw a 57% increase in dollar volume, though transaction counts slipped by 13%.
This uptick in activity comes despite broader concerns around office market performance and overall economic conditions. Still, the 590 Madison sale represents a key test for investor appetite for trophy assets in Manhattan as the market adapts to changing demand and investment strategies.
