Sale of Former IBM HQ on Madison Avenue Fetches 10-Figure Price

with partner Florida-based Elliott Investment Management have closed on the $1.08 billion purchase of 590 Madison Avenue. Challenges to lock in financing required the securing of a two-week extension that resulted in a “$5 million fee that was tacked onto the final purchase price.” Subsequently a loan for $785 million was secured from Apollo Global Management, soon to be a tenant at the building, having signed a lease in April 2025 for 96,224 square feet. According to the article by The Real Deal, the loan was comprised of “a $650 million senior loan, a $135 million mezzanine loan, and about $60 million in future funding commitments for things like tenant improvements and leasing costs.” In February 2025, it was announced that the State Teachers Retirement System of Ohio (STRS Ohio) had introduced the $1.1 billion sale offering of the approximately 1 million-square-foot full block tower. Initially structured as a “deferred payment sale in which the buyer could pay installments to meet the heavy $1 billion-plus price tag,” the seller was also “weighing 100 percent purchase options” according to news reports in May. STRS Ohio and Edward J. Minskoff Equities purchased the building for an undisclosed price in 1994 from International Business Machines Corp. (IBM) who simultaneously secured a leaseback of the building; but in 2024 relocated to a 362,092-square-foot One Madison Avenue, which enabled the firm to consolidate ten New York City offices while downsizing its Manhattan footprint. The building has continued to be called the IBM Building, despite the loss of its namesake tenant. In 2015 STRS Ohio reportedly purchased Minskoff’s stake, however, Minskoff continued to manage the property. The Real Deal’s article indicates that STRS Ohio “signed about 300,000 square feet of leases at the tower” over the past year. In addition to Apollo’s lease another notable signing was the 150,000-square-foot deal spanning four floors by Paris-based retail trade conglomerate LVMH last September.

Source:    https://therealdeal.com/new-york/2025/08/14/rxr-closes-590-madison-avenue-with-apollo-loan/