Apollo Global Management finalized a leasing deal with 590 Madison Avenue a month after initial reports.
Marc Rowan’s alternative asset manager signed a lease for 100,000 square feet at the Midtown Manhattan property, the Commercial Observer reported. The asking rent and lease were not disclosed; Apollo is expected to occupy the 10th through 13th floors by the end of next year.
The property is owned by the State Teachers Retirement System of Ohio and managed by Edward J. Minskoff Equities. Other tenants at the 41-story building include LVMH, private equity firm Reverence Capital Partners, private equity firm Crestview Partners and financial services firm E.F. Hutton. As TRD reported last year, asking rent at 590 Madison was $190 per square foot, though no specific rent details for tenants have been disclosed.
A CBRE team, including Stephen Siegel and Michael Geoghegan, represented Apollo in the transaction, while a CBRE team, including Evan Haskell and James Ackerson, represented management alongside Minskoff’s Jeffrey Sussman and Matthew Pynn in-house.
It’s unclear how the lease will affect Apollo’s other office holdings in New York City, which include 71,000 square feet at 1095 Sixth Avenue — a sublease from MetLife — and its 185,000-square-foot headquarters at 9 West 57th Street.
Apollo pushed back against the Observer’s previous report that employees at the Sixth Avenue office could be relocated to Madison Avenue.
Apollo is hopping onto 590 Madison at a time of great uncertainty for the property. Two months ago, STRS Ohio made the office building available for sale, one of the market’s largest trophy assets to be marketed since the onset of the pandemic.
The pension fund priced the 1-million-square-foot property at $1.1 billion, which could result in the city’s first billion-dollar investment sale in two years. An Eastdil Secured team of Roy March, Gary Phillips and Will Silverman are leading the marketing effort.
— Holden Walter-Warner