Key Takeaways
- • Crestview Partners leased the entire 25,499-square-foot 42nd floor at 590 Madison Avenue (the IBM Building) in Midtown Manhattan, relocating its headquarters from 667 Madison Avenue a few blocks north.
- • The transaction valued the lease at approximately 40 percent above the building's standard upper-floor asking rate of $100 per square foot, though specific lease terms and duration were not disclosed.
- • Crestview is taking over space previously occupied by Bain Capital, which relocated to 535 Madison Avenue earlier in the year, reflecting ongoing demand for premium office real estate among major PE firms on Madison Avenue.
- • The 43-story, 1-million-square-foot office tower is owned by the State Teachers Retirement System of Ohio pension fund and managed by Edward J. Minskoff Equities; STRS Ohio is actively marketing the property for sale at approximately $1.3 billion.
- • Savills Studley (Mitchell Steir and Greg Taubin) represented Crestview; CBRE's team and Edward J. Minskoff Equities represented the landlord.
Summary
Crestview Partners, a prominent private equity firm, has signed a lease for the entire 42nd floor at 590 Madison Avenue, a 43-story office tower located at the southwest corner of East 57th Street in Manhattan's Midtown district. The full-floor lease encompasses 25,499 square feet and represents a strategic relocation of Crestview's headquarters a few blocks south from its previous location at 667 Madison Avenue. The transaction reflects sustained appetite for prime office space among large institutional investors in New York's financial district.
The lease was priced at a significant premium to market rates. According to The New York Post, the deal values at approximately 40 percent above the building's standard asking rent of $100 per square foot for upper-floor space, though neither the specific lease rate nor the contract duration were confirmed by either Crestview or the landlord. Crestview's relocation was slated to commence in summer 2019.
The 42nd-floor space was previously occupied by Boston-based private equity giant Bain Capital, which relocated to 535 Madison Avenue earlier in the year. This succession illustrates the competitive dynamics within Midtown Manhattan's office market, where major PE firms actively seek premium full-floor spaces on Madison Avenue. The transaction was facilitated by Mitchell Steir and Greg Taubin of Savills Studley representing Crestview, while CBRE's team—including Stephen Siegel, Evan Haskell, James Ackerson, Brett Shannon, and Taylor Scheinman—represented the landlord alongside Jeffrey Sussman of Edward J. Minskoff Equities, which manages the property.
The 590 Madison Avenue building, also known as the IBM Building, is owned by the State Teachers Retirement System of Ohio pension fund. According to Bloomberg reporting, STRS Ohio has listed the property for sale with an asking price of approximately $1.3 billion, indicating the landlord's active portfolio management strategy despite the successful lease transaction.
The lease was priced at a significant premium to market rates. According to The New York Post, the deal values at approximately 40 percent above the building's standard asking rent of $100 per square foot for upper-floor space, though neither the specific lease rate nor the contract duration were confirmed by either Crestview or the landlord. Crestview's relocation was slated to commence in summer 2019.
The 42nd-floor space was previously occupied by Boston-based private equity giant Bain Capital, which relocated to 535 Madison Avenue earlier in the year. This succession illustrates the competitive dynamics within Midtown Manhattan's office market, where major PE firms actively seek premium full-floor spaces on Madison Avenue. The transaction was facilitated by Mitchell Steir and Greg Taubin of Savills Studley representing Crestview, while CBRE's team—including Stephen Siegel, Evan Haskell, James Ackerson, Brett Shannon, and Taylor Scheinman—represented the landlord alongside Jeffrey Sussman of Edward J. Minskoff Equities, which manages the property.
The 590 Madison Avenue building, also known as the IBM Building, is owned by the State Teachers Retirement System of Ohio pension fund. According to Bloomberg reporting, STRS Ohio has listed the property for sale with an asking price of approximately $1.3 billion, indicating the landlord's active portfolio management strategy despite the successful lease transaction.
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