Real estate investor Scott Rechler’s RXR Realty is in exclusive discussions to buy 340 Madison Ave, a 22-story midtown Manhattan office building, from Broadway Partners, a person familiar with the deal said.

RXR may pay $570m, for the 22-story tower, said the person, who asked not to be identified because the deal isn’t complete. At that price, the building would be worth about $770 a sq ft, based on the square footage listed on Broadway Partners’ Web site. The company, based in Uniondale, New York, is in talks to buy the property in phases, taking only a partial interest at first, the person said.

A deal for 340 Madison would demonstrate a recovery in New York’s office market, Woody Heller, executive managing director at Studley Inc., said in an interview this month. Manhattan commercial property sales tripled in value in the first quarter to $3.3bn, according to broker Cushman & Wakefield.