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By: Paul Bubny
Marx Realty announced telemedicine giant Teladoc Health has expanded and extended its lease at 10 Grand Central. The firm will more than double its footprint at the repositioned office tower, taking a total of 15,000 square feet in a 10-year deal as it relocates its corporate headquarters from Purchase, NY. Exiger, a cyber security and supply chain technology firm, will take 7,000 square feet in a new, seven-year lease at 10 Grand Central.
Teladoc was represented by Sean Lynch of JLL while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann, and Thomas Schwartz are leading a team handling leasing for Marx Realty.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” said Craig Deitelzweig, CEO of Marx Realty.
Marx Realty Signs 17,000 SF of Tech Firm Leases at 10 Grand Central
Marx Realty announced that telemedicine giant Teladoc Health has expanded and extended its lease at 10 Grand Central. The firm will more than double its footprint at the repositioned office tower for a total of 15,000 square feet in a 10-year deal as it relocates its corporate headquarters from Purchase, NY. Exiger, a cybersecurity and supply chain technology firm, will take 7,000 square feet in a new, seven-year lease at 10 Grand Central.
Teladoc was represented by Sean Lynch of JLL while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty. Asking rents at 10 Grand Central range from $78 to $130 per square foot.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” said Craig Deitelzweig, CEO of Marx Realty. “10 Grand Central provides much more than just workspaces. Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. The incredible leasing velocity at 10 Grand Central is proof positive that we created a new benchmark for workplace design when we pioneered the hospitality-infused aesthetic at 10 Grand Central in 2018 and we’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
Marx Realty created an all-encompassing sensory experience at 10 Grand Central, starting with its bold façade featuring marquee brass fins and oversized walnut doors, attended by a uniformed doorman. Inside, the lobby showcases rich walnut wood and brushed brass accents infused with the firm’s signature scent. The 7,500-square-foot indoor/outdoor lounge and club floor includes a café, a 40-seat conference space and The Ivy Terrace – an outdoor area inspired by the elegance of a 1930s garden party. An electric Porsche Taycan, dubbed the MarxMobile, serves as the house car.
The building also offers “The Meeting Galleries,” a recently delivered 11,000 square feet of amenity space, including The Grand Gallery, capable of hosting up to 200 people in a town hall or classroom configuration; The Screening Gallery with stadium seating; The Bar Car featuring a fireplace, a pre-function area, and a lounge with a variety of seating areas and private work rooms and The Podcast Gallery, a tech-equipped soundproof booth with state of the art production equipment.
“This evolution in our amenity offering at 10 Grand central is a resounding success,” said Deitelzweig. “New and existing tenants are enamored by the beauty and functionality of The Galleries as the perfect complement to the sensory experience we created at 10 Grand Central.”
Teladoc to relocate headquarters from New York suburb to ManhattanBy Andria Cheng
Teladoc Health is moving its headquarters to 10 Grand Central near Manhattan’s Grand Central Terminal. (Marx Realty)
Telemedicine provider Teladoc Health is moving its headquarters from the New York suburb of Purchase to Manhattan.
The telehealth firm is more than doubling its footprint to 15,000 square feet in a 10-year deal at Manhattan’s 10 Grand Central at 155 E. 44th St. as it plans to move its corporate headquarters from Purchase, New York, to the city, landlord Marx Realty said Wednesday in a statement.
The lease comes as 10 Grand Central, steps from Grand Central Terminal transit hub, has been renovated to feature amenities such as a 7,500-square-foot indoor and outdoor lounge and club floor. The building, seeking to offer tenants hotel-like amenities, also features an electric Porsche Taycan that serves as the house car. Marx Realty said it recently also created “The Meeting Galleries,” a suite of spaces that feature a town hall space that can host up to 200 people; a screening gallery with stadium seating; and a podcast studio.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants,” said Craig Deitelzweig, CEO of Marx Realty. “Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. … We’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
In addition to Teladoc, Exiger, a cybersecurity and supply chain technology firm, also is taking 7,000 square feet in a new, seven-year lease at 10 Grand Central, Marx said, adding that Exiger is relocating from 230 Park Ave.
Teladoc was represented by Sean Lynch of JLL, while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty.
Asking rents at 10 Grand Central range from $78 to $130 per square foot.
Marx Realty has inked over 100,000 square feet of office and ground- floor retail space at the building in the last year, with its high-profile tenants also including Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions; insurance giant MassMutual; and international news agency Agence France-Presse. Sweetgreen, Maman and Cava occupy street-level retail spaces at the property.
For the record
Teladoc was represented by Sean Lynch of JLL, while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty.
Teladoc CEO Chuck Divita and 10 Grand Central.PHOTOS: Courtesy Teladoc; Courtesy Marx Realty
Attention, Grand Central, the doctor will see you now (virtually).
Teladoc Health, an online health care resource, renewed its offices at Marx Realty’s 10 Grand Central and doubled its footprint to 15,000 square feet in a 10-year deal, according to the landlord.
The company is in the process of relocating its corporate headquarters to New York City from its longtime headquarters in Purchase, N.Y.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” Craig Deitelzweig, CEO of Marx Realty, said in a statement.
Teladoc moved into 10 Grand Central in 2023, when it originally took 7,000 square feet, as Commercial Observer previously reported.
JLL (JLL)’s Sean Lynch represented Teladoc in the deal.
Additionally, Marx also signed a seven-year lease with cyber security and supply chain technology firm Exiger at 10 Grand Central. The firm will occupy 7,000 square feet at the Midtown East office tower, according to Marx.
The cyber security company — which has offices in Bucharest, London and Singapore — will be relocating its New York City outpost from 230 Park Avenue, Marx said.
Exiger was represented by Mitchell Konsker and Simon Landmann of JLL.
Konsker, Landmann, Carlee Palmer, and Thomas Schwartz from JLL handled both deals for Marx Reality.
JLL did not immediately respond to a request for comment.
Asking rents at 10 Grand Central range from $78 to $130 per square foot, according to Marx Realty. The firm has been redeveloping the 35-story office tower in hope of creating an office building that has a vibe more like a luxury hotel.
“10 Grand Central provides much more than just workspaces,” Deitelzweig said. “Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. The incredible leasing velocity at 10 Grand Central is proof positive that we created a new benchmark for workplace design when we pioneered the hospitality-infused aesthetic at 10 Grand Central in 2018, and we’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
Other tenants of 10 Grand Central include production company Seven Bucks Productions (which is co-owned by Dwayne “The Rock” Johnson), insurance company Mass Mutual and bank holding company Merchants Bancorp.
Companies are once again battling for Manhattan office space and prices are surgingBy Lois Weiss
The sexy view-happy patio at the Lever House.Brian Zak/NY Post
Trophy offices are so hot, brokers say tenants better put a ring on it before someone else does.
Adam Henick of Current Real Estate Advisors had financial clients that were eyeing the newly built boutique office building at 360 Bowery near Soho that could have housed numerous family offices and well-funded tech funds. Then, he recalled, “In one fell swoop all that supply was taken off the market because Chobani leased the entire building.”
Even the city’s core Plaza District that includes Fifth, Madison and Park avenues north of Grand Central will soon have “No Vacancy” signs up.
Newly built 360 Bowery.Handout
Leading the city’s stats, leasing in the Plaza District hit 3.26 million square feet in the last quarter of 2024. This includes a Citadel lease for 504,000 square feet at Brookfield’s 660 Fifth Ave. that paves the way for its current offices at 350 Park and the adjacent 40 E. 52 St. to be demolished and rebuilt with 1.8 million square feet touching 1,600 feet high — but it won’t be ready until … oh, maybe 2032.
Since there is little new development rolling out and another 100 million square feet in “zombie” properties that can’t sign deals due to fiscal or other issues, the unspoken for portion of the remaining 360 million feet is getting all the action.
JLL reported overall leasing hit 30.2 million square feet and was the most since 2018 with a vacancy of 18%. A record 28 deals were signed above $200 per foot with 212 above $100 per foot.
Leases for two full floors at Stefan Soloviev’s 9 W. 57th St. with Tikehau Capital and Platinum Equity were among those signed at over $200 a foot.
“There are fewer opportunities and fewer buildings that can meet the market,” said Mark Weiss of Cushman & Wakefield. “We went from weak market to a tight market within a year. Premium buildings and premium locations have great pricing power.”
Trophy offices in the Plaza District are being gobbled up by major players. Just look at 660 Fifth Ave., where finance giant Citadel signed a massive half-million-square-foot deal.Brookfield Properties
The most recent deals at Lever House at 390 Park Ave. were all signed above $200 per foot, well outpacing the average trophy rent of $150 per foot, according to CBRE. Remaining floors now have asking rents ranging from $240 to $280 per foot. CBRE, whose main offices are at 200 Park, even nailed down six floors at Lever House for its own “global financial headquarters” with two as flex space for top executives, who also get the use of its upscale club.
Market rents for investors are being underwritten 20% to 30% higher since the pandemic, especially around Park Avenue and for towers with access to Grand Central Terminal. The trophy One Vanderbilt, for instance, is getting nearly $300 per foot — when available.
“This is obviously a changing market, the type of workplaces [people] want to be in, the neighborhoods they want to be in, the type of buildings they want to be in,” said Scott Rechler of RXR. “There’s a flight to quality.”
Lever House at 390 Park Ave. is seeing deals over $200 a foot. Downtown, 60 Wall St. is attracting savvy tenants looking for value.Lucas Blair Simpson
Rechler’s Commodore Tower at 175 Park Ave. next to Grand Central Terminal already has a 453,000-square-foot Park Hyatt in hand but the 2.8 million-square-foot monster in waiting by RXR, TF Cornerstone and Michael Dell’s firm, DFO Management, needs a boost from a big office anchor to fill the remaining 2.1 million square feet.
The Plaza District is the tightest submarket and because capital markets have suffocated construction, Henick said that dynamic won’t change very soon.
Other projects that need anchor tenants before getting construction financing include BXP’s 347 Madison Ave., which has asking rents from $175 a foot in the base to over $300 at the top.
“They are not getting price resistance,” said one broker who asked for anonymity. But brokers are hoping BXP doesn’t wait for an anchor because, they say: ”Build it and the tenants will come.”
“The story of 2024 was how well core Midtown has done but as companies [seeking space] realize what they want doesn’t exist, the demand will broaden to other submarkets.”
– Howard Fiddle of CBRE
Floors at Alchemy-ABR’s entirely new 125 W. 57th St., which all have views of Central Park, are expected to be gobbled up by those needing floorplates of around 11,000 square feet.
SL Green’s 245 Park Ave. is undergoing a redo and is expected to get high rents, as well.
Between West 42nd and West 43rd streets, the new boutique 520 Fifth Ave. includes access to its private club. It will be open later this year and negotiating several deals.
“The building is on fire and a complement to Nicky Rabina and how great a developer he is,” said investment sales broker Doug Middleton of CBRE.
Next door at 522 Fifth Ave., owner Aby Rosen said he has worked out finances at the vacant building and is targeting companies that want a corporate headquarters.
Gary Barnett’s tower at 570 Fifth Ave., with an IKEA in its base, won’t be available for at least three years.
Still, tenants that first start looking at that time will have difficulty finding solutions, Henick explained.
The new ground floor space at 570 Fifth Ave. will be ready for Ikea to move in by 2028.INGKA
Further out from Grand Central Terminal and Hudson Yards, the demand is weaker and rents are lower — now averaging around $77 per foot overall.
“The story of 2024 was how well core Midtown has done but as companies [seeking space] realize what they want doesn’t exist, the demand will broaden to other submarkets,” predicted Howard Fiddle of CBRE.
Since not every company can afford $200 a foot, Fiddle believes tenants will also make fiscally prudent leaps to downtown, where Colliers reports an average asking rent of $57.03 per foot.
Already, Colliers reports downtown’s total yearly absorption of 2.27 million square feet was the most since 2014.
Downtown, 60 Wall St. is attracting savvy tenants looking for value.Lois Weiss
Fiddle is part of the leasing team for 60 Wall St., where asking rents start in the $70s per foot. Owner Paramount Group has a $250 million renovation underway for the entirely vacant 1.6 million-square-foot former headquarters building.
Just north of Tribeca in Hudson Square, Disney is settling into its new digs, and brokers believe it will boost the area’s restaurants and retailers.
It may also kickstart Taconic Partners and Nuveen’s One Grand, a 28-story, 478,000-square-foot boutique office building designed by SHoP that will include a new public school on land at 76 Varick St. owned by Trinity Church.
Nearby, Hudson Square Properties, a joint venture, redeveloped 345 Hudson St. by joining it to the entirely new 555 Greenwich St. This now 1.7 million-square-foot building has new amenities, a town hall and rooftop terraces.
Din Tai Fung occupies 26,000 square feet of the underground level at 1633 Broadway.Jason Varney
In Midtown, Paramount Group’s 1633 Broadway has floorplates of 40,000 to 50,000 square feet and rents from the $60s to $80s per foot. There’s an Equinox, plus its new restaurant, Din Thai Fung, has a cult following and a new lobby renovation is forthcoming.
Unique hospitality-like amenities are creating bidding wars for the offices at 10 Grand Central.
“We have four groups vying for the same space,” said Craig Deitelzweigof Marx Realty. “We built out two floors of pre-builts and they are all gone.”
Here, Marx has 11,000 square feet of amenities that include an elegant 200-seat town hall, which “everyone wants for events and product launches” and had city approvals in time for his holiday party, featuring Rockettes and sushi. A podcast room and movie spot are in adjoining areas while a second floor of amenities has a boardroom and cozy, see-through igloos on its terrace.
“Tenants want amazing spaces and want to enjoy going to work and if you don’t make it special and distinctive it won’t lease. But if you do, you will get high rent,” said Deitelzweig.
Three floors of around 12,000 square feet will be available this year at Marx’s highly amenitized 545 Madison Ave. that is co-branded with Baccarat. Asking rents range from $120 to $130 per foot — and he expects to get that pricing.
When clients tour and can compare new construction with even glass towers built 50 or 60 years ago, they can see vast differences. “You can add amenities and you can refresh the lobby, but you are not removing columns or making the windows larger,” Henick said. “That is one of the issues that will plague the market.”
NYC building investors are getting prices last seen 20 years ago as values bottom outBy Lois Weiss
Deutsche Bank picked up the massive Essex Crossing development along Delancey St. for a mere $236.9 million. It will likely be resold.MOSO
Calling anyone with cash: There’s never going to be a better time to buy a piece of NYC.
“Values have come down a lot and stabilized in 2024 — and now present an opportunity,” said Ariel Property Advisors’ Shimon Shkury of the market for both office and multi-family buildings.
In fact, buyers are now getting pricing last seen 20 to 25 years ago. Office condos that were selling for $800 to $1,000 per foot in 2019 are now closer to $400 a foot. “Owners are negotiating because they want to stay alive,” said attorney Jay Neveloff, who heads real estate at Kramer Levin.
These values are positively retro: Savanna paid just $255 million for the 185,000-square-foot office building at 799 Broadway. It cost $300 million to develop and is 71% occupied.
For instance, Michael Cohen’s Williams Equities paid $147.5 million for 470 Park Ave. South or $490 per foot; it sold in 2018 for $245 million. Savanna paid $255 million, or $1,380 per foot, to Columbia Property Trust and Cannon Hill Capital Partners in the lender-advised sale of 799 Broadway. That 2022-built, 185,000-square-foot office building cost $300 million to develop and is 71% occupied at high rents.
Zar Property New York bought two smaller deals for even less: 119 W. 57th St. on Billionaires’ Row for $27 million, or $170 per foot, and 30 W. 61st St. for $15.2 million, or $97 per foot.
“The people buying for sub-$300 per foot or sub-$200 per foot are taking a chance,” said Craig Waggner of Cushman & Wakefield. “The city is perceived as a safe haven and it’s hard to go wrong.”
Michael Cohen’s Williams Equities paid $147.5 million for 470 Park Ave.Russ Colchamiro
In another steep valuation reset, Robert Moser’s Prime Group Holdings and Empire Capital will pay $50 million for the Ironworks project at 511-541 W. 25th St. in Chelsea. The sellers paid $148 million for it in 2019. The buyers will turn a portion into storage facilities.
Many of these bargain-basement prices come courtesy of owners and lenders who want to ditch properties dinged by factors including high interest rates, ground rent resets and regulations. Lenders are also initiating deals to sell both performing and underperforming notes.
“There is a lot of enthusiasm that we are through the worst, but also caution about the trajectory of the healing,” added Andrew Scandalios of JLL. “It’s tilted positive for equities and the buy-side investors are bullish, but they are all cautious and selective about the quality of what they are buying.”
“The people buying for sub-$300 per foot or sub-$200 per foot are taking a chance … the city is perceived as a safe haven and it’s hard to go wrong.”
Craig Waggner of Cushman & Wakefield
High-net-worth individuals, family offices and international groups are also kicking bricks and buoying the market.
“The international community will be more focused on higher quality and we are seeing some Asian investors that want to chase distressed opportunities,” said Doug Middleton of CBRE.
For instance, SL Green sold an 11% stake in the trophy One Vanderbilt to the Japanese family-owned Mori Building Company, revaluing the tower at $4.7 billion or around $3,000 per foot.
In this rising market, owners are more willing to bring in new equity, even if it leaves them with a smaller share, Neveloff explained. To capitalize on that interest from wealthy foreign investors, Neveloff’s firm is merging with an international law firm with 23 offices around the world and after May 1, will be known as HSF Kramer in the US.
“The market is bouncing off the bottom and has created a foundation for the recovery,” noted Douglas Harmon of Newmark. “There will be new opportunities at significantly reduced prices.”
Meanwhile, SL Green bought the offices at 500 Park Ave. from Morgan Stanley for $130 million.Brian Zak/NY Post
He and Adam Spies marketed the office portion of Morgan Stanley’s 500 Park Ave., which is being sold to SL Green for $130 million; and 2 Park Ave. being purchased by Haddad Brands for $360 million — that seller paid $519 million in 2007.
The newly developed offices and retail at Essex Crossing at 145 and 155 Delancey St. in the base of residential towers were taken over by lender Deutsche Bank for its loan of $236.9 million and will likely be resold.
But the poster child for the steep reset in values is the former Sports Illustrated Building at 135 W. 50th St., which was purchased in early 2024 for $8.5 million; it once traded for $332 million.
Now, after a ground lease rent reset, the buyer, Texas-based Thakkar Developers, is targeting $150 million in renovations.
With deals this good floating around, Marx Realty CEO Craig Deitelzweig might as well speak for the entire industry when he told The Post, “We want to buy more.”
Craig Deitelzweig — President and CEO at Marx Realty & Improvement Co.
Are you going to buy in `25? If so, what asset class?
Definitely. We will be buying office buildings in 2025, as we believe we are experiencing a once-in-a-generation-type of buying opportunity. Of course, we will be selective in our purchases with an emphasis on location and the bones of the asset.
Is there a single “good” sign you see in a distressed property that makes you want to buy it?
We often think about how the asset could be transformed. We love to see assets that were performing well at some point and have just lost their edge because the property is not properly catering to the market. We see this often as some landlords have not evolved, and have assets that seem stuck in time or have undergone mediocre and uninspired repositionings.
What real estate or tax policy would you like to see from a Trump administration?
It would be great to see incentives encouraging owners to invest in transforming the nation’s older office buildings into world-class assets. We have long believed that, much like some of the best hotel assets, heritage office buildings with modern upgrades tend to attract tenants seeking spaces with a strong sense of history, authenticity and soul. There are also strong environmental reasons for transforming older office buildings into state-of-the-art office spaces, and it would be helpful if there were more tax incentives to accelerate this transformation.
If you could stack the new administration with people you know and do business with, who would you choose?
Max Gross and Cathy Cunningham. [“We will not accept if nominated, and will not serve if elected.” — M.G. and C.C.]
Let’s talk about office. Is the worst over?
Yes. But not for everyone. Marx Realty assets are seeing incredible leasing velocity, record rental rates and robust demand from all different sectors of the economy, particularly from private equity, fintech, tech and fashion. This speaks well for the future of New York office. Lastly, physical occupancy in our buildings is better than pre-pandemic, which also signals this is a great buying opportunity.
On Thanksgiving Day, we delivered the Meeting Galleries, another 11,000 square feet of amenities to complement the building’s current amenity offering. We are seeing such strong demand for our spaces in the building that we have been able to raise rents two times this year — and that’s before delivering our new Meeting Galleries. I don’t think we have ever seen demand like this for our buildings.
Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?
We have purchased two office buildings in D.C., as we believe this market is well-positioned to attract higher-end law firms, lobbying and strategist groups, associations, and technology firms that seek quality office spaces like ours.
San Francisco just seems like a disaster, given the amount of crime and unpleasantness of the streetscape. The vacancy rate for office space in that city is just scary. I can’t tell you how many times I hear leaders in New York and D.C. say they don’t want to be like San Francisco. Miami also seems to be in a downward trend for office buildings, and we are avoiding that market.
How’s the financing climate for new development and redevelopment — hot, cold or just right?
Cold still, unfortunately.
What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration?
The City of Yes is quickly becoming the City of Maybe.
Do you still like Eric Adams?
Mayor Adams has very good intentions, but hasn’t been as effective as we need him to be. That said, he is terrific compared to his predecessor.
Lightning Round:
Your social media of choice?
LinkedIn for work, X and Instagram for non-work.
AI: Helpful in CRE or a fad?
Ultimately, very helpful.
Last movie you saw in a theater?
I can’t recall, which is kinda telling.
You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane?
KFC.
Tesla or BMW?
One of our all-electric MarxMobiles: the Porsche Taycan, Tesla Y or Rivian.
Will interest rates be below or above 4 percent on July 1, 2025?
Slightly below.
If you could partner with one person in the business on a property, who would it be?
Ian Schrager.
What are you tired of talking about?
The existential threat to office — we always have been believers in hospitality-infused office product and the need to collaborate and grow better together.
ned a five-year, 3,200-square-foot lease on the building’s ninth floor, while investment bank Peel Hunt signed a six-year, 3,000-square-foot lease on the 16th floor. Both firms will move into pre-built suites as part of the MarxReady program.
Hillcrest Finance was represented by Cushman & Wakefield’s Pierce Hance while Peel Hunt was represented by Scott Ansel of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz lead a team handling leasing for Marx Realty.
“This continual stream of new leases at 10 Grand Central further validate the value of our MarxReady pre-built series and the hospitality-infused repositioning of the property,” said Craig Deitelzweig, president and CEO of Marx Realty. “These two new leases highlight 10 Grand Central’s thoughtfully crafted, turnkey spaces that embody the building’s unique blend of hospitality and modern office design.”
Marx Realty Adds Tenants at 10 Grand Central via Pre-Built Spaces
By: Paul Bubny
Marx Realty signed Hillcrest Finance and Peel Hunt to new leases at 10 Grand Central in Midtown Manhattan. Real estate investment management firm Hillcrest Finance has signed a five-year, 3,200-square-foot lease on the building’s ninth floor, while investment bank Peel Hunt signed a six-year, 3,000-square-foot lease on the 16th floor. Both firms will move into pre-built suites as part of the MarxReady program.
Hillcrest Finance was represented by Cushman & Wakefield’s Pierce Hance while Peel Hunt was represented by Scott Ansel of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz lead a team handling leasing for Marx Realty.
“This continual stream of new leases at 10 Grand Central further validate the value of our MarxReady pre-built series and the hospitality-infused repositioning of the property,” said Craig Deitelzweig, president and CEO of Marx Realty. “These two new leases highlight 10 Grand Central’s thoughtfully crafted, turnkey spaces that embody the building’s unique blend of hospitality and modern office design.”
Marx Realty Plans Luxury Train-Inspired Meeting Spaces at 10 Grand Central
By: Paul Bubny
Marx Realty, a New York-based nationwide owner, developer and manager of office, retail and multifamily property, revealed plans for an 11,000-square-foot amenity suite on the 11th floor at 10 Grand Central. The Meeting Galleries will comprise four distinctive and reservable spaces to accommodate board meetings, corporate retreats, holiday parties, product launches, team building activities, podcast production and other uses.
“This new space will be a first-of-its-kind experience unlike anything available in today’s office buildings, and tenants have already submitted reservation requests,” said Craig Deitelzweig, president and CEO of Marx Realty. “We always aim to anticipate and exceed the expectations of our tenants. These purpose-built spaces pay homage to the nearby Grand Central Terminal, with a nod to the Beaux Arts era of luxury train travel, featuring realistic influences and textured layers of warmth and sophistication.”
The Meeting Galleries spaces will include The Grand Gallery, The Bar Car, The Podcast Gallery and a Screening Gallery.
The Plan: 10 Grand Central Gets a Train-Themed Tenant LoungeDo you love trains? This tenant lounge is for you.
By Abigail Nehring September 19, 2024
The 11,000-square-foot lounge celebrates 10 Grand Central’s Beaux-Arts roots.RENDERING: Courtesy of Tangram 3DS
A rendering of The Bar Car at 10 Grand Central.RENDERING: Courtesy of Tangram 3DS
10 Grand Central’s Grand Gallery will be able to host up to 200 people in town hall-style meetings.RENDERING: Courtesy of Tangram 3DS
Tenants will be able to book a movie night at the Screening Gallery.RENDERING: Courtesy of Tangram 3DS
Office workers at Marx Realty’s 10 Grand Central might be surprised not to see rail ties and crop fields flashing by when they look out the porthole-like windows of the The Galleries, a tenant lounge on the 11th floor.
That’s because the space looks just like a turn-of-the-century luxury train car, down to the rounded corners of the windows, oxidized copper finishes and fan pattern mosaic tile on the floor.
It’s an ode to the building’s Beaux-Arts heritage and a subtle reminder of its proximity to nearby Grand Central Terminal, the hub that weighs more heavily on companies’ decision to lease office space in the age of hybrid work, according to Marx President and CEO Craig Deitelzweig.
“We really wanted to make this space special and different than any other space in the market,” Deitelzweig said. “Tying it into train lines from the same period made all the sense in the world.”
In fact, Marx’s in-house design team, together with Studios Architecture, have been leaning into that concept throughout the 35-story building at the corner of East 44th Street and Third Avenue, beginning in 2019 with a $45 million lobby renovation and overhaul of the 3,000-square-foot terrace and lounge on the seventh floor.
Now tenants are getting another 11,000 square feet of amenities at The Galleries, including a cocktail bar, a town hall-style meeting room, a mini movie theater and a podcast studio.
The space, which will open in November, builds on motifs already sprinkled throughout the 438,000-square-foot property, designed in 1931 by Ely Jacques Kahn, including the color Marx dubs “10 Grand Central Green,” a warm olive shade that you might expect Mr. Green to wear in a game of Clue.
You’ll see the color on the couches lining the perimeter of The Galleries and the floor-to-ceiling drapes that break up the burlwood wall paneling.
Despite the retro design, the space is equipped with 21st century technology. That includes the recording equipment in the podcast studio, which is already booked through December, according to Deitelzweig.
Deitelzweig said his goal is to give tenants what they desire, and right now that’s an eclectic mix of work and play areas.
“Tenants really look at office buildings similar to hotels now,” he said.
The cross-pollination of the city’s hospitality sector and Class A office market in the wake of the pandemic is a trend Marx helped start across its half-dozen Manhattan office properties. At 10 Grand Central, which has an alternate address of 155 East 44th Street, the investment seems to be working.
The building has been fully occupied since early last year, Deitelzweig said. Attracting tenants also became easier when Marx got some buzz for dropping $100,000 on an electric Porsche Taycan as an amenity for the property in 2022.
“We want our tenants to love coming to work, to make it a joy to experience this type of space, and really show it off,” Deitelzweig said. “That’s why they come to the office time and time again.”