Scott Rechler has taken one step closer to owning his coveted Madison Avenue trophy.
Rechler’s RXR signed a hard contract for 590 Madison Avenue and put a $50 million deposit down on the Plaza District skyscraper, sources familiar with the sale told The Real Deal.
The company signed a letter of intent about three and a half weeks ago to purchase the building from the STRS Ohio state teachers’ pension fund for close to $1.1 billion. The contract signing is the next step toward finalizing the purchase. The deal is scheduled to close by July 30, though one source said it’s likely to close sometime in the middle of next month.
A spokesperson for RXR declined to comment, and a representative for STRS Ohio did not immediately respond.
Once the deal closes, Rechler will finally have his hands on a property he’s been eyeing for quite some time. RXR made a previous offer to buy the former IBM Building, according to sources, though the timing wasn’t clear.
It could have been when STRS Ohio first put the 1 million-square-foot tower up for sale in 2018. One source said RXR made an unsolicited offer last year.
RXR has another connection with the pension fund: STRS Ohio is Rechler’s partner on his Amazon-leased warehouse in Maspeth, Queens, at 55-15 Grand Avenue, which RXR purchased in 2018.
Rechler’s company won a bidding contest last month to buy 590 Madison for close to $1.1 billion, as TRD first reported, and is partnering with Paul Singer’s Elliott Investment Management on the deal.
Eastdil Secured negotiated the sale.
It’s the first New York City office sale to crack the $1 billion mark since Google bought its Hudson Square headquarters in 2022 for $2.1 billion.
RXR earlier this year acquired a 49 percent stake in Ivanhoé Cambridge’s 1211 Sixth Avenue office tower.
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RXR buying 590 Madison for close to $1.1B
Pension fund puts 590 Madison up for sale, seeking more than $1B
