RXR, Elliott, Baupost pay $1.08B for 590 Madison in Midtown East

RXR Realty, Elliott Investment Management, and Baupost Group through the entity RXR 590 Madison Owner LLC paid $1.08 billion to State Teachers Retirement System of Ohio through the entity 590 Madison Avenue, LLC for the office building (O4) at 590 Madison Avenue, and the retail building (K2) at 9 East 56th Street and 8 East 57th Street, all in Midtown East, Manhattan. The expected use is cash flowing.

The Real Deal reported on the sale and loan saying Elliott Investment Management and Baupost Group were partners on the deal, and that Apollo Global Management originated $785 million in acquisition loan debt. Of that, $650 million was recorded in city records.
The deal closed on August 14, 2025 and was recorded on August 18, 2025. The three properties have 1,053,612 square feet of built space and 46,384 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $1,025 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for State Teachers Retirement System of Ohio was Aaron L. DiCenzo. The signatory for RXR Realty , Elliott Investment Management , and Baupost Group was David Frank . The contract date was May 23, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RXR Realty purchased four properties in three transactions for a total of $696.7 million and sold five properties in four transactions for a total of $854.5 million over the past 24 months.
The seller State Teachers Retirement System of Ohio had not purchased any other properties and had not sold any properties over the same time period. Out of the three properties, two with a total of 1,053,612 square feet of built space generated revenue of $107.7 million per year.

The property

The office building in Midtown East has 1,053,612 square feet of built space and 46,384 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 195 feet deep with a total lot size of 39,162 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $553.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $10,150 in OATH penalties in the last year.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $2.8 billion in sales volume in the last two years. For development, Midtown East is the 3rd most active neighborhood among other neighborhoods. It had 19 million square feet of commercial and multi-family construction under development in the last two years, which represents 30 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 590 Madison Avenue, PincusCo has identified the owners of three of the 11 commercial properties representing 708,518 square feet of the 2,008,017 square feet. The largest owner is Sl Green Realty, followed by Jonathan Pokoik and then Jacob & Co..
On the tax block, there was one new building construction project filed totaling 15,663 square feet. It is a 15,663 square-foot mercantile (M) building submitted by Mary Leprohon with plans filed April 27, 2015 and permitted February 12, 2016.

The majority, or 90 percent of the 2 million square feet of built space are office buildings, with retail buildings next occupying 10 percent of the space.

The buyer

The PincusCo database currently indicates that RXR Realty owned at least 21 commercial properties with 1,000 residential units in New York City with 8,954,095 square feet and a city-determined market value of $2.9 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 88 percent of the 8,954,095 square feet of built space are office properties, with D3 properties next occupying 5 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 16 percent of the space.
The PincusCo database currently indicates that Baupost Group owned at least three commercial properties with 307 residential units in New York City with 1,273,050 square feet and a city-determined market value of 0.0. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 60 percent of the 1,273,050 square feet of built space are D7 properties, with O4 properties next occupying 40 percent of the space. They are all located in Manhattan.

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