New York City’s 590 Madison goes up for sale at roughly US$1.1 billion

A MANHATTAN office skyscraper on Madison Avenue is up for sale, in one of the first major tests of the market for trophy office building sales this year.

The property at 590 Madison Ave is being priced at roughly US$1.1 billion, according to sources familiar with the matter, who asked not to be named citing private details. Eastdil Secured brokers Roy March, Gary Phillips and Will Silverman are marketing the tower.

A spokesperson for the State Teachers Retirement System of Ohio, which owns the building, did not immediately respond to a request for comment. A representative for Eastdil declined to comment on the pricing.

The tower, located on Madison Avenue between 56th and 57th streets, is one of New York’s biggest trophy assets to be actively marketed for sale since the pandemic, a period that has seen few major transactions. The property was long known as the IBM Building, given the technology firm’s offices in the skyscraper. But the company has since relocated to 1 Madison Ave.

“The average hold period of real estate on the eight corners on 57th Street and Madison Avenues and 57th and Fifth is over 40 years, indicating the rarity of this opportunity,” Silverman said.

Demand for high-quality buildings in midtown Manhattan has strengthened in recent weeks. Blackstone was in talks to purchase a stake in 1345 Avenue of the Americas, a deal that would mark a return to New York City dealmaking for the giant property investor. Citadel’s Ken Griffin is moving ahead with his new office skyscraper on Park Avenue, and filed official plans with the city earlier this month. BLOOMBERG