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July 18, 2022
6,000-Square-Foot Ground Lease for First Ground-up Location in New York City
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced it has signed a 20-year, 6,000-square-foot ground lease with Atlanta-based Chick-fil-A. The existing three-story office building at 1573 Flatbush Ave. in the Midwood section of Brooklyn will be demolished for the fast food restaurant to build its first ground-up, stand-alone New York City outpost.
“The site proved to be a more attractive long-term option for a retail food use and we’re excited to partner with this very popular restaurant group,” said Craig Deitelzweig, president and CEO of Marx Realty in a statement. “The Chick-fil-A store will bring a renewed energy to this bustling neighborhood with this first ground-up New York City location.”
Marx Realty was represented in-house by Henry Henderson and Michael Friedman of Inline Realty and Jeremy Ezra of Newmark represented Chick-fil-A. Rents in the area range from $90-125 per square foot.
Marx Realty Brings Chick-fil-A to Brooklyn with 6,000 SF Ground Lease for First Ground-up Location in New York City
July 18, 2022
Marx Realty (MNPP), a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced today it has signed a 20-year, 6,000-square-foot ground lease with Atlanta-based Chick-fil-A. The existing three-story office building at 1573 Flatbush Ave. in the Midwood section of Brooklyn will be demolished for the fast food restaurant to build its first ground-up, stand-alone New York City outpost.
“The site proved to be a more attractive long-term option for a retail food use and we’re excited to partner with this very popular restaurant group,” said Craig Deitelzweig, president and CEO of Marx Realty. “The Chick-fil-A store will bring a renewed energy to this bustling neighborhood with this first ground-up New York City location.”
Marx Realty was represented in-house by Henry Henderson and Michael Friedman of Inline Realty and Jeremy Ezra of Newmark represented Chick-fil-A. Rents in the area range from $90-125 per square foot.
From New York City to Los Angeles, Chick-fil-A restaurants span the country from coast to coast. Now in 47 states and counting, the restaurant chain opened an in-line store in Brooklyn in 2019. The chain has more than a dozen locations throughout the five boroughs, most of which are in Manhattan.
Chick-fil-A will build its first ground-up store in NYC
July 18, 2022
For seven years, New Yorkers have been able to partake of what many people feel is the best chicken sandwich ever made. Soon, they will be able to do it in an actual Chick-fil-A restaurant.
Marx Realty has announced that the Atlanta-based fried-chicken-sandwich phenomenon has signed a 20-year lease on a 6,000-sq.-ft. lot in the Midwood section of Brooklyn, where it will build its first ground-up, stand-alone location in New York City.
“The site proved to be a more attractive long-term option for a retail food use and we’re excited to partner with this very popular restaurant group,” said Craig Deitelzweig, president and CEO of Marx Realty. “The Chick-fil-A store will bring a renewed energy to this bustling neighborhood.”
The Atlanta-based chain opened its first New York City store in 2015 at 37th and 6th in Manhattan’s Garment district in an existing building. Since then, it’s added 18 more locations in The Big Apple—three in Queens, one in Brooklyn, and one at the Staten Island Mall—all in pre-existing buildings.
No completion date has been set for the completion of the store. The three-story office building now in place at the site must be demolished first.
Chick-fil-A operates 2,700 restaurants in 47 states, Washington, D.C., Puerto Rico, and Canada.
Chick-fil-A to open first stand-alone branch in city near Brooklyn College
July 17, 2022
The upcoming Chick-fil-A will be the chain’s first ground-up, stand-alone outpost in the city. Above, a store on Sixth Avenue in Manhattan.
National fast-food favorite Chick-fil-A’s Big Apple expansion rolls on. It just signed a 6,000-square-foot, 20-year ground lease at 1573 Flatbush Ave. in Brooklyn’s Midwood, where it will put up a new building to replace a small office property.
It will be the chain’s first ground-up, stand-alone outpost in the city. Chick-fil-A’s 1,900 nationwide outlets were recently named the nation’s favorite fast-food chain by the American Customer Satisfaction Index.
Landlord Marx Realty is best known for office towers on Third and Madison Aves. in Manhattan. Marx President and CEO Craig Deitelzweig wouldn’t say what Chick-fil-A is paying, but retail rents in the busy Midwood neighborhood range from $90-$125 per square foot.
When we told Deitelzweig we were surprised that Marx owned such a small site in Brooklyn, he chuckled, “We have some others, too. We’ve had this particular one for 80 years.”
Unlike most other Chick-fil-A’s here, the Midwood location near Brooklyn College will feature abundant indoor seating.
“They think it will be one of their highest-grossing stores in the country,” Deitelzweig said.
He said the restaurant will start its build-out as soon as Marx completes demolishing the old building, “which was past its prime,” he said.
“We’re excited because everybody loves Chick-fil-A,” he added. “And they have terrific credit.”
Remote Work, Changing Demand Bigger Threats to Office Market Than Recession
Who’s afraid of the big, bad bear?
As it turns out, most people — economists and real estate professionals alike are anticipating a recession in the next 12 months, driven by inflation and the Federal Reserve raising interest rates. The anticipation alone is enough to push New York City’s landlords, tenants and lenders to aggressively negotiate lease terms, take caution when underwriting loans, and just generally buckle down for what’s to come. But most expressed hope that the recession will be quick, if not completely painless.
The pain felt by the office market, however, is much bigger than a recession.
But the “unsustainably hot” labor market, as Fed Chairman Jerome Powell has termed it, is already tightening. JPMorgan Chase cut hundreds of home-lending employees at the end of June. Compass, Redfin, Coinbase and Netflix have all laid off staff. While Powell has said he doesn’t want to put people out of work, he said in mid-June that the economy “really cannot have the kind of labor market we want without price stability.” With a tighter labor market, workers may head back to the office to demonstrate their commitment to work (and desire not to be culled in a round of layoffs) but firms aren’t likely to leverage a downturn to get workers back to their cubicles, Chandan said.
Though maybe Chandan hasn’t run into Jeffrey Gural in a while.
“If a company starts laying people off, that will almost force people to come back,” Gural, chairman of landlord GFP Real Estate, said. “It is more likely [that a boss] is going to cut the people who never come to the office. I know I would.”
Employees who haven’t made a recent appearance at their desks might want to get some facetime with their bosses if the labor market begins to loosen, Craig Deitelzweig, president and CEO of landlord Marx Realty, added.
Ivy Terrace has generated $500,000 for Marx Realty in NYC. Here’s how.
July 12, 2022
Ivy Terrace, a private terrace overlooking East 44th Street and near Grand Central Station, has been an unexpected boon for its owner, Marx Realty.
The 7,500-square-foot terrace, which is on the seventh floor of the 10 Grand Central office building, has generated $500,000 from rentals over the past year, Marx Realty said.
The space, with views of East 44th Street and skyscrapers scattered among Lexington and Third Avenues, has become a popular destination for corporate summer parties, birthday parties and even engagement celebrations.
“It has been an unexpected surprise how popular this terrace has become especially to those outside of the building,” Marx Realty CEO Craig Deitezlweig told the New York Business Journal. “It’s also been a way for us to showcase the building to prospective tenants in a more casual environment.”
Ivy Terrace is nestled at the end of the building’s club space, which features a 40-person conference room with views of the balcony, a fully-stocked bar and gelato machine. The outdoor terrace spans 3,000 square feet while the indoor club space spans 4,500 square feet.
Marx Realty initially offered the building’s terrace to nonprofit organizations such as the Urban Land Institute, which has used the balcony for gatherings of up to 100 people. Soon after it opened in 2018, Deitezlweig says, his phone began ringing inquiring about renting the outdoor terrace space.
Deitezlweig says many people are surprised that the terrace is a part of the building’s original 1931 design by Ely Jacques Kahn.
“Office buildings in the 1930s had a more hospitality bent with lounge floors and terraces similar to what we’re working to bring back in many of our buildings,” he said.
Deitezlweig says 10 Grand Central has more terraces than floors. The building boasts 44 terraces reaching up to 5,000 square feet and 36 floors.
Tenants within the building have access to the club floor and can reserve the conference room for a certain number of days annually.
“We believe in the democratization of space,” Deitezlweig said. “Our space is for all of our tenants, their employees and their guests.”
Marx Realty Signs Over 16,000 Square Feet in New Office and Retail Leases at 10 Grand CentralJune 7, 2022
Marx Realty (MNPP), a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced Merchants Bancorp, Strata Equity Group, and French bakery maman have signed leases totaling 16,000 square feet at the company’s iconic, hospitality-infused 10 Grand Central office tower in Midtown Manhattan. In total, 51,000 square feet of leases have been signed at 10 Grand Central in the last two months.
“10 Grand Central continues to play a pivotal role in Midtown Manhattan’s ongoing return to the office,” said Craig Deitelzweig, president and CEO of Marx Realty. “We are thrilled to welcome two highly regarded firms along with a fantastic French bakery to our already diverse tenant roster at this iconic building. The brisk leasing and tour activity is a testament to our incredibly successful hospitality-inspired repositioning strategy in place across our portfolio.”
Merchants Bancorp has signed a 10,000-square-foot, 10-year lease on the building’s 24th floor while Strata Equity Group signed a 3,000-square-foot, 7-year lease on the 23rd floor. Both companies are making 10 Grand Central their official New York headquarters and first location in the city. Additionally, Maman bakery has also signed a 3,000-square-foot, 10-year lease on the ground floor fronting 44th St. Maman joins a number of popular food and retail options at street level including Mediterranean restaurant CAVA, Little Collins Australian café, and health-conscious salad chain Sweetgreen.
“The latest leasing activity at 10 Grand Central proves the building is positioned as an ideal location for both national and international high-profile companies looking to have a presence in New York,” added Deitelzweig. “The building’s repositioning strategy, paired with an unbeatable location just steps away from Grand Central Terminal, continue to make it one of the most sought-after office towers in Manhattan.”
In 2019, Marx Realty completed a $48 million top-to-bottom repositioning of the 35-story, Ely Jacques-Kahn-designed building. Among the building’s most impressive features are its sleekly styled lobby as well as a 7,500-square-foot indoor/outdoor club floor boasting a well-appointed lounge, 40-seat conference space and The Ivy Terrace, all designed to mimic the world’s finest hotels.
The most recent addition at 10 Grand Central, the Penthouse Collection, consists of 20,000 square feet of uber-luxe penthouse offices on floors 32 through 36, which offer exceptionally designed suites and an elevated first-of-its-kind aesthetic. Floors 32 and 33 have been completed while the rest of the collection is expected to be delivered later this year.
“We are proud to have created a completely new asset class through Marx Realty’s signature hospitality-infused sensibility,” added Deitelzweig. “We continue to see tremendous leasing activity at Marx-owned buildings that have undergone the same treatment, including 545 Madison in New York, The Herald in Washington D.C. and The Department Building in Atlanta.”
10 Grand Central’s repositioning allowed Marx Realty to review the building’s environmental footprint. In addition to daily focus on maximizing wellness for tenants, guests, and the community at large via cleaning procedures, janitorial processes and waste management, Marx Realty implemented a program to plant three trees in the area for every lease that is signed at 10 Grand Central, as well as its other assets across the country.
10 Grand Central’s remarkable new tenants join an already impressive and diverse roster of tenants, including conference organizer for health innovation HLTH; golf investing company LIV Golf Inc.; weekly online news magazine The Week; real estate investment firm Benenson Capital Partners; and Goldman Sachs-backed Crux Informatics. High-profile tenants also include Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions (as reported by the New York Post); insurance giant MassMutual, and international news agency Agence France-Presse.
The redesign was led by David Burns, principal of Studios Architecture. JLL’s Mitchell Konsker, Benjamin Bass, Kip Orban, Carlee Palmer, and Thomas Schwartz are leading a team handling the leasing for Marx Realty. The building’s asking rents range between $65 and $120 per square foot.
Marx Realty Signs Over 16,000 SF in New Office and Retail Leases at 10 Grand CentralJune 8, 2022
Merchants Bancorp, Strata Equity Group and Maman Bakery Join Remarkable Tenant Roster at Hospitality-Inspired Midtown Office Tower
Marx Realty (MNPP), a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced Merchants Bancorp, Strata Equity Group, and French bakery maman have signed leases totaling 16,000 square feet at the company’s iconic, hospitality-infused 10 Grand Central office tower in Midtown Manhattan. In total, 51,000 square feet of leases have been signed at 10 Grand Central in the last two months.
“10 Grand Central continues to play a pivotal role in Midtown Manhattan’s ongoing return to the office,” said Craig Deitelzweig, president and CEO of Marx Realty. “We are thrilled to welcome two highly regarded firms along with a fantastic French bakery to our already diverse tenant roster at this iconic building. The brisk leasing and tour activity is a testament to our incredibly successful hospitality-inspired repositioning strategy in place across our portfolio.”
Merchants Bancorp has signed a 10,000-square-foot, 10-year lease on the building’s 24th floor while Strata Equity Group signed a 3,000-square-foot, 7-year lease on the 23rd floor. Both companies are making 10 Grand Central their official New York headquarters and first location in the city. Additionally, Maman bakery has also signed a 3,000-square-foot, 10-year lease on the ground floor fronting 44th St. Maman joins a number of popular food and retail options at street level including Mediterranean restaurant CAVA, Little Collins Australian café, and health-conscious salad chain Sweetgreen.
“The latest leasing activity at 10 Grand Central proves the building is positioned as an ideal location for both national and international high-profile companies looking to have a presence in New York,” added Deitelzweig. “The building’s repositioning strategy, paired with an unbeatable location just steps away from Grand Central Terminal, continue to make it one of the most sought-after office towers in Manhattan.”
In 2019, Marx Realty completed a $48 million top-to-bottom repositioning of the 35-story, Ely Jacques-Kahn-designed building. Among the building’s most impressive features are its sleekly styled lobby as well as a 7,500-square-foot indoor/outdoor club floor boasting a well-appointed lounge, 40-seat conference space and The Ivy Terrace, all designed to mimic the world’s finest hotels.
The most recent addition at 10 Grand Central, the Penthouse Collection, consists of 20,000 square feet of uber-luxe penthouse offices on floors 32 through 36, which offer exceptionally designed suites and an elevated first-of-its-kind aesthetic. Floors 32 and 33 have been completed while the rest of the collection is expected to be delivered later this year.
“We are proud to have created a completely new asset class through Marx Realty’s signature hospitality-infused sensibility,” added Deitelzweig. “We continue to see tremendous leasing activity at Marx-owned buildings that have undergone the same treatment, including 545 Madison in New York, The Herald in Washington D.C. and The Department Building in Atlanta.”
10 Grand Central’s repositioning allowed Marx Realty to review the building’s environmental footprint. In addition to daily focus on maximizing wellness for tenants, guests, and the community at large via cleaning procedures, janitorial processes and waste management, Marx Realty implemented a program to plant three trees in the area for every lease that is signed at 10 Grand Central, as well as its other assets across the country.
10 Grand Central’s remarkable new tenants join an already impressive and diverse roster of tenants, including conference organizer for health innovation HLTH; golf investing company LIV Golf Inc.; weekly online news magazine The Week; real estate investment firm Benenson Capital Partners; and Goldman Sachs-backed Crux Informatics. High-profile tenants also include Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions (as reported by the New York Post); insurance giant MassMutual, and international news agency Agence France-Presse.
The redesign was led by David Burns, principal of Studios Architecture. JLL’s Mitchell Konsker, Benjamin Bass, Kip Orban, Carlee Palmer, and Thomas Schwartz are leading a team handling the leasing for Marx Realty. The building’s asking rents range between $65 and $120 per square foot.
Merchants Bancorp Opening 10K-SF NYC Headquarters at 10 Grand CentralJune 7, 2022 | by Celia Young
The Indiana-based Merchants Bancorp is taking its business to the Big Apple.
The bank holding company inked a 10-year lease to open a new 10,000-square-foot New York City headquarters on the entire 24th floor of 10 Grand Central, according to landlord Marx Realty. Asking rent was $84 per square foot for the space in the building on the corner of East 44th Street and Third Avenue.
“[Merchants] wanted to have a real presence in New York and wanted the space to really speak to their brand and excite their employees to come into the office — as well as make a real impression on their guests when they come to the office,” Craig Deitelzweig, Marx’s CEO and president, said. The building, “with its hospitality vibe, spoke to them really from day one,” he said.
The bank plans to move into its new space this fall, Deitelzweig said. Merchants, which owns Merchants Bank of Indiana, will take over offices previously occupied by financial services firm Macro Holdings, which left the Midtown building at the end of last year, said Deitelzweig.
The 35-story building, which has an alternative address of 155 East 44th Street, also recently signed deals with the privately held real estate investment firm Strata Equity Group, which took 3,000 square feet on the 23rd floor of the tower in a seven-year lease, and Maman Bakery, which grabbed 3,000 square feet of ground-floor retail in a 10-year retail lease. The property is also home to online news magazine The Week, Dwayne “The Rock” Johnson’s production company Seven Bucks Productions, and insurance firm MassMutual.
JLL’s Mitchell Konsker, Benjamin Bass, Kip Orban, Carlee Palmer and Thomas Swartz represented Marx Realty in the deal. Savills’ Chris Foerch handled it for the tenant. Both JLL and Foerch did not immediately respond to requests for comment.
Marx Realty Signs Over 16,000 Square Feet in New Office and Retail Leases at 10 Grand CentralMerchants Bancorp, Strata Equity Group and Maman Bakery Join Tenant Roster
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced Merchants Bancorp, Strata Equity Group, and French bakery maman have signed leases totaling 16,000 square feet at the company’s iconic, hospitality-infused 10 Grand Central office tower in Midtown Manhattan. In total, 51,000 square feet of leases have been signed at 10 Grand Central in the last two months.
“10 Grand Central continues to play a pivotal role in Midtown Manhattan’s ongoing return to the office,” said Craig Deitelzweig, president and CEO of Marx Realty in a statement. “We are thrilled to welcome two highly regarded firms along with a fantastic French bakery to our already diverse tenant roster at this iconic building. The brisk leasing and tour activity is a testament to our incredibly successful hospitality-inspired repositioning strategy in place across our portfolio.”
Merchants Bancorp has signed a 10,000-square-foot, 10-year lease on the building’s 24th floor while Strata Equity Group signed a 3,000-square-foot, 7-year lease on the 23rd floor. Both companies are making 10 Grand Central their official New York headquarters and first location in the city. Additionally, Maman bakery has also signed a 3,000-square-foot, 10-year lease on the ground floor fronting 44th St. Maman joins a number of popular food and retail options at street level including Mediterranean restaurant CAVA, Little Collins Australian café, and health-conscious salad chain Sweetgreen.
“The latest leasing activity at 10 Grand Central proves the building is positioned as an ideal location for both national and international high-profile companies looking to have a presence in New York,” added Deitelzweig. “The building’s repositioning strategy, paired with an unbeatable location just steps away from Grand Central Terminal, continue to make it one of the most sought-after office towers in Manhattan.”
In 2019, Marx Realty completed a $48 million top-to-bottom repositioning of the 35-story, Ely Jacques-Kahn-designed building. Among the building’s most impressive features are its sleekly styled lobby as well as a 7,500-square-foot indoor/outdoor club floor boasting a well-appointed lounge, 40-seat conference space and The Ivy Terrace, all designed to mimic the world’s finest hotels.
The most recent addition at 10 Grand Central, the Penthouse Collection, consists of 20,000 square feet of uber-luxe penthouse offices on floors 32 through 36, which offer exceptionally designed suites and an elevated first-of-its-kind aesthetic. Floors 32 and 33 have been completed while the rest of the collection is expected to be delivered later this year.
“We are proud to have created a completely new asset class through Marx Realty’s signature hospitality-infused sensibility,” added Deitelzweig. “We continue to see tremendous leasing activity at Marx-owned buildings that have undergone the same treatment, including 545 Madison in New York, The Herald in Washington D.C. and The Department Building in Atlanta.”
10 Grand Central’s repositioning allowed Marx Realty to review the building’s environmental footprint. In addition to daily focus on maximizing wellness for tenants, guests, and the community at large via cleaning procedures, janitorial processes and waste management, Marx Realty implemented a program to plant three trees in the area for every lease that is signed at 10 Grand Central, as well as its other assets across the country.
10 Grand Central’s remarkable new tenants join an already impressive and diverse roster of tenants, including conference organizer for health innovation HLTH; golf investing company LIV Golf Inc.; weekly online news magazine The Week; real estate investment firm Benenson Capital Partners; and Goldman Sachs-backed Crux Informatics. High-profile tenants also include Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions (as reported by the New York Post); insurance giant MassMutual, and international news agency Agence France-Presse.
The redesign was led by David Burns, principal of Studios Architecture. JLL’s Mitchell Konsker, Benjamin Bass, Kip Orban, Carlee Palmer, and Thomas Schwartz are leading a team handling the leasing for Marx Realty. The building’s asking rents range between $65 and $120 per square foot.
