The IBM Building in midtown Manhattan is up for sale with a $1.3 billion price tag, according to Bloomberg.
The 43-story tower is located at 590 Madison Ave. and totals 1.1 million square feet.
The building is 80 percent leased with IBM as its largest tenant, leasing 120,000 square feet.
Cushman & Wakefield is marketing the property.
In first half 2018, $22.5 billion of Manhattan properties — such as office towers and apartment complexes — changed hands, up 34 percent from a year earlier, according to Cushman & Wakefield.
Manhattan’s second quarter 2018 new leasing activity reached 9.1 million square feet, marking only the third time quarterly leasing exceeded 9 million square feet, reported Cushman & Wakefield. A total of 13 new leases greater than 100,000 square feet were transacted during the quarter, bringing the year-to-date total to 24 — seven of which were commitments to new construction.
Overall sales transaction volume of properties valued at $2.5 million or more clocked in at $118.8 billion in the second quarter 2018, which was up 2 percent compared to the same quarter last year and the second consecutive quarter with a sales volume gain, according to Real Capital Analytics (RCA). The Manhattan office market picked up through the first half of the year with RCA citing the decline of Chinese investor activity, which likely lowered the price expectations of sellers and created more deal activity there.
Other high-priced Manhattan office transactions include:
Columbia Property Trust is in talks on a joint venture with Normandy Real Estate Partners to buy into an office project located at 799 Broadway in Manhattan’s Greenwich Village.
Brookfield Asset Management acquired a 100 percent leasehold interest in 666 Fifth Avenue’s office condo, a 1.5 million-square-foot, 40-story building in Midtown Manhattan, through one of its real estate investment funds. And Brookfield Property Partners sold a 28 percent stake in its New York core office portfolio, with a plan to syndicate up to an additional 7 percent interest in this portfolio, with total projected proceeds of $1.8 billion.
A joint venture of L&L Holding Co. and Normandy Real Estate Partners agreed to pay $900 million for a storied, former freight warehouse in Manhattan’s Chelsea neighborhood.
Commerz Real, a subsidiary of Commerzbank AG, purchased the 25-story office building at 222 E. 41st Street in New York City for $333 million.
SL Green Realty Corp. and its joint venture partner, Ivanhoe Cambridge, sold the leasehold office condominium at 1745 Broadway in Manhattan for a price of $633 million.
Savanna purchased 5 Bryant Park for $640 million.
