The Real Deal New York

Pension fund seeks to sell 590 Madison

Deal could net $1.3B
August 14, 2018 09:00AM

590 Madison Avenue and Edward Minskoff (Credit: Google maps and 590 Madison Avenue)

An Ohio-based pension fund is looking to sell 590 Madison Avenue, an office tower that could pull in as much as $1.3 billion.

The 43-story building, known as the IBM Building, is owned by the State Teachers Retirement System of Ohio, which purchased the remaining stake in the property three years ago, Bloomberg reported. Tech giant International Business Machines Corp. remains the building’s largest tenant, occupying about 120,000 square feet of the tower’s total 1.1 million square feet.

Cushman & Wakefield‘s Doug Harmon and Adam Spies are marketing the building.

A majority of the the tower is leased up. Private equity firm Crestview Advisors just signed on for the entire 42nd floor, which spans 25,499 square feet, the New York Post reported.

Back in 2014, STRS considered selling a 49 percent stake in the tower but reversed course a year later and instead refinanced its mortgage. Minskoff Equities manages the property.

For its part, IBM announced last year that it was on the hunt for as much as 350,000 square feet of additional space in the city. In March, the company agreed to lease 27,699 square feet lease at 19 Union Square West. IBM also inked a deal with WeWork to take all of the co-working company’s 70,000 square feet at 88 University Place. [Bloomberg, NYP] — Kathryn Brenzel