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wo major deals last week, both facilitated by the Newmark team, sent shockwaves through the city's investment-sale markets. However, insiders believe Miki Naftali's $810 million purchase of 800 Fifth Ave., a 33-story rental apartment tower, had a more significant impact on the luxury residential market than Scott Rechler's RXR's $1.08 billion deal for 590 Madison Ave.

    Naftali plans to demolish the building and replace it with a new condo tower, which could require evicting or relocating tenants of 208 apartments. Despite this, sources say the mood in the building remains subdued but not panicked, as Naftali's move was anticipated by many. The building, developed by Bernard Spitzer in 1978, will be transformed into a luxury condominium.

    Meanwhile, RXR closed on its purchase of 590 Madison Ave., a 1 million square-foot office tower, for $1.08 billion. This deal is seen as a "distress" sale, with RXR crediting its Office Recovery Strategy for targeting trophy office properties at discounted prices. The tower has rebounded since IBM's departure two years ago and now boasts an occupancy rate of 87% after a recent lease with Apollo Global Management.

    A question mark surrounds the future of the Bonhams space on the Madison Avenue side, which will be vacated next year when the auction house moves to 111 W. 57th St. However, insiders believe this vacancy could become an asset in today's hot market for luxury retail.

    The Newmark team, led by Douglas Harmon and Adam Spies, brokered both deals, with Harmon and Spies also acting as equity capital advisors to RXR and its partner Elliott Investment Management.