The Real Deal New York

Retirement fund puts 49 percent of 590 Madison on the market

State Teachers Retirement System of Ohio plans to keep a controlling stake in the property

October 10, 2014 08:30AM

From left: 590 Madison Avenue and developer Edward Minskoff

From left: 590 Madison Avenue and developer Edward Minskoff

The State Teachers Retirement System of Ohio has put a 49 percent stake in 590 Madison Avenue on the market. The building, which was originally developed as IBM’s headquarters, could fetch as much as $1.5 billion, according to Crain’s.

Ohio STRS will still keep a majority interest in the 43-story, 1 million-square-foot tower. The property on the corner of East 57th Street and Madison Avenue includes a large public plaza.

By selling a stake, the pension fund can capitalize on New York City’s rising real estate prices, according to Crain’s, while still keeping control of an asset that continues to bring in cash. IBM is the building’s largest tenant and occupies 120,000 square feet. [Crain’s] — Claire Moses

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