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Safra family eyes stake in 590 Madison Ave.

Deal could value 43-story Midtown tower at more than $1.5B

From left: 590 Madison Avenue and developer Edward Minskoff
From left: 590 Madison Avenue and developer Edward Minskoff

The Safra family of Brazil is in late-stage discussions to acquire a minority stake in 590 Madison Avenue, a 43-story Midtown office tower owned by Minskoff Equities and the State Teachers Retirement System of Ohio.

The deal could value the 1 million-square-foot property, located on the corner of Madison Avenue and East 57th Street, at north of $1.5 billion.

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The size of the stake that Safra plans to buy is unclear, Crain’s reported, but it will be a minority stake. The Safra family, a global banking dynasty that is among the world’s wealthiest, is also a part owner of the GM Building at 767 Fifth Avenue, which is currently the priciest office tower in the U.S. with a $3.4 billion valuation.

A source familiar with 590 Madison told Crain’s that while the office portion of the property is nearly at full occupancy, the retail portion has potential upside, with watch company Tourneau and auction house Bonhams paying below-market rents.

CBRE’s Darcy Stacom and Bill Shanahan are handling the sale. [Crain’s] – Hiten Samtani

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