RXR has closed its $1.08 billion acquisition of 590 Madison Avenue, a trophy one-million-square-foot, 42-story class A office tower strategically positioned in Midtown Manhattan's Plaza District. The acquisition from STRS Ohio, one of the nation's largest pension funds, marks the largest full asset, non-user driven office acquisition in New York City since 2018.
Through its “Office Recovery Strategy,” RXR targets class A, trophy office properties that can be acquired at significant discounts to peak valuation. RXR is able to leverage its vertically integrated capabilities and unique market knowledge to acquire these properties from institutions who are seeking to reduce their exposure to office. RXR believes that these types of assets will be long-term winners in a bifurcated office market that is increasingly characterized by soaring demand for and shrinking supply of high-quality office space in Manhattan. 590 Madison is the most recent example of how this strategy is b
