NEW YORK CITY-Confirming rumors that have circulated for twomonths, RXR Realty said late Monday afternoon it’s under contractto acquire a 49% interest in the 739,000-square-foot office towerat 340 Madison Ave. Based on a $570-million property valuation, RXRis paying $279.3 million for the stake, its first direct propertyinvestment in Manhattan since its formation in 2007.

A spokesman for RXR tells GlobeSt.com that the deal as announcedthis week differs from earlier published reports that said theUniondale, NY-based owner/developer would acquire 340 Madisonoutright in phases from its current ownership, a joint venture ofBroadway Partners and the D.E. Shaw group. As it’s now structured,the deal calls for Broadway to retain a 51% interest in theproperty. RXR will lead the recapitalization on behalf of theRXR/Broadway venture, as well as the refinancing of the existing$400-million first mortgage debt with ING Real Estate Finance.

RXR will utilize capacity from its balance sheet and recentlyraised real estate opportunity fund to acquire the interest,according to a release. “By structuring this transaction in acreative manner, it allowed us to underwrite more attractivereturns than could otherwise be expected from an outright purchaseof the property,” RXR CEO Scott Rechler says in the release.