RXR’s Billion-Dollar Bet on Madison Avenue
One of the most significant office trades since the pandemic is nearing the finish line. RXR has signed a letter of intent to purchase 590 Madison Avenue from STRS Ohio for roughly $1.1 billion. The 1 million-square-foot property—once known as the IBM Building—is 85% leased to major tenants like LVMH, Apollo Global, and Crestview Partners.
The deal, brokered by Eastdil Secured, saw intense competition from industry heavyweights including Blackstone, SL Green, and Tishman Speyer. Ultimately, RXR’s offer for full ownership won out, avoiding more complex installment sale structures that were floated by others. This is the first $1B+ office sale in New York City since Google acquired 550 Washington Street in 2022.
RXR has been busy: the firm also picked up a 49% stake in 1211 Avenue of the Americas and secured a loan extension on that property earlier this year.
Hudson Yards Casino Scrapped, Housing Doubles
In a major pivot, Wynn Resorts has exited the casino proposal for Hudson Yards West, leaving Related Companies and Oxford Properties to redesign the project as a non-gaming development. Their new plan boosts housing dramatically—from 1,500 to up to 4,000 units, with 25% affordable, and includes new office, hotel, and open space.
The developers are now pursuing a rezoning application that avoids the complexities of casino-related approvals. Expanded parkland near the High Line (6.6 acres) and a proposed PILOT financing structure round out the revised concept. Despite this withdrawal, multiple groups remain in the hunt for NYC’s limited number of downstate gaming licenses.
Office-to-Resi Conversions Heat Up
Conversions continue to dominate the development narrative.
Vanbarton Group is under contract to purchase 6 East 43rd Street for $140 million, with plans to convert the property into 450–500 apartments. This is their third conversion play in the past year, alongside 1011 First Avenue, 77 Water Street, and the completed 160 Water Street, which brought 600 new apartments online.
Meanwhile, Metro Loft and David Werner have secured $720 million in construction financing from Madison Realty Capital for the conversion of the former Pfizer HQ at 219 and 235 East 42nd Street. The scale is massive: 1,602 units planned, 25% affordable, and delivery expected in 2027. It’s the largest loan ever issued for a New York office-to-residential conversion.
Distress Mounts Across Multiple Sectors
The distressed pipeline is deepening:
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At 30 Broad Street, InterVest Capital Group will auction the ground lease on June 25 following a $162.9M pre-foreclosure judgment against a Tribeca Investment Group affiliate.
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In Midtown, Yellowstone Real Estate has initiated foreclosure on Paramdeep Singh’s Hotel @ Times Square. Singh defaulted on a $44.5M loan and is reportedly in trouble on another nearby asset. The hotel had briefly operated as a migrant shelter.
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225 Park Avenue South, also known as the American Woolen Building, is nearing recapitalization. TPG and Sagehall are expected to join as equity partners. The 700,000 SF building is currently vacant and has lost over $400 million in value since its 2017 CMBS peak. Future use may include condos or a hybrid office/resi strategy.
Nir Meir Ordered Back to Rikers
Former HFZ Capital executive Nir Meir has been ordered back to jail by a New York judge. Meir had been released under 24-hour home monitoring following charges tied to an alleged $86 million fraud scheme. It’s unclear what triggered the court’s reversal. His bail remains at $5M cash and $7.5M in bond. Meir recently parted ways with his attorney; other defendants in the case have begun pleading guilty.