Private Equity Firm Takes Full Floor at for-Sale 590 Madison Avenue
Private equity firm Crestview Partners is moving its Midtown headquarters a few blocks south after inking a lease for just under 25,500 square feet at 590 Madison Avenue.
Crestview will be taking the entire 25,499-square-foot 42nd floor at the 43-story, 1-million-square-foot office tower at the southwest corner of East 57th Street, sources confirmed to Commercial Observer. The firm is slated to relocate from its current offices at 667 Madison Avenue at the southeast corner of East 61st Street when the new lease commences in the summer of 2019.
Asking rent and the length of the lease were not immediately clear. According to The New York Post, which first reported on the transaction, the deal is valued at 40 percent above the $100-per-square-foot rents that the building’s upper floors normally command—though those figures could not be confirmed.
According to CoStar Group data, Crestview is taking over the 42nd-floor space from Boston-based private equity giant Bain Capital, which signed a deal earlier this year to relocate its offices to 535 Madison Avenue, as CO reported in June.
Mitchell Steir and Greg Taubin of Savills Studley represented Crestview. A CBRE (CBRE) team of Stephen Siegel, Evan Haskell, James Ackerson, Brett Shannon and Taylor Scheinman represented the landlord, the State Teachers Retirement System of Ohio pension fund, alongside Jeffrey Sussman of Edward J. Minskoff Equities, which manages the property on behalf of STRS Ohio.
Representatives for Crestview and CBRE confirmed the deal, but declined to provide additional details. A spokeswoman for Savills Studley declined to comment.
Earlier this week, Bloomberg reported that STRS Ohio was putting 590 Madison Avenue, also known as the IBM Building, up for sale in the hope of fetching around $1.3 billion for the property. The pension fund has reportedly tapped the Cushman & Wakefield (CWK) team of Doug Harmon and Adam Spies—who have handled many of the city’s major, nine-figure trophy office building transactions in recent years—to market the asset.
In addition to IBM, which anchors 590 Madison Avenue with roughly 110,000 square feet of space, other office tenants at the property include financial services firms Morgan Stanley, Colony Capital and Pine River Capital Management.