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The real estate arm of the Milstein family, Ogden CAP Properties, will stick with its 42,000-square-foot offices at 545 Madison Avenue, Commercial Observer has learned.
Ogden inked a three-year deal for the third through sixth floors of the 18-story Marx Realty building, extending its lease until 2027, according to Craig Deitelzweig, president and CEO of Marx. Asking rents at the property between East 54th and East 55th streets range from $84 to $101 per square foot.
Ogden CAP Properties, which has the largest footprint in the 140,000-square-foot building, owns a huge swath of luxury residential properties across Manhattan. Ogden first moved to just 27,000 square feet in 2012, where it has managed the real estate empire of the late brothers Seymour and Paul Milstein ever since. It’s unclear when the company expanded to its current footprint.
The two Milsteins invested in buildings in Harlem, the Upper West Side and Battery Park beginning in the 1960s, becoming one of the biggest real estate names in the city. Ogden is now run by siblings Philip and Constance Milstein.
Ogden’s deal was one of five recently signed in the building, which Marx assumed control of in 2019 after evicting Thor Equities from its ground lease. Marx spent $10 million to renovate the property, which convinced some tenants with “one foot out the door” to stay, Deitelzweig said.
“Existing tenants finalized extensions based on our strong reputation in the sector and we completed construction swiftly, even in the face of a global pandemic,” Deitelzweig said.
Among those staying include Home Shopping Network’s (HSN) parent company, Qurate Retail Group, which signed a two-year extension for its 12,000-square-foot office and filming space on part of the 17th and 18th floors, Deitelzweig said.
HSN, which Qurate bought in 2017, moved to the tower’s glass-encased penthouse in 2009 to hawk its tracksuits, night creams and makeup on television, CO reported.
Other recent deals include Vialto taking 8,000 square feet for its first New York offices. Consultants Corniche Growth Advisors will slightly expand from its nearby 551 Madison Avenue to 6,500 square feet at 545 Madison Avenue, Deitelzweig said.
Cushman & Wakefield’s Tara Stacom, Peter Trivelas, Harry Blair, Justin Royce, Connor Daugstrup, Bianca Di Mauro and Remy Liebersohn brokered all five deals for Marx.
CBRE’s Ramsey Feher represented Qurate while Ogden had no brokers. CBRE declined to comment, and C&W did not immediately respond to a request for comment.
545 Madison Drives Occupancy to 100 Percent
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 76,500 square feet of new and extended leases at 545 Madison. Marx Realty took control of the building in December 2019 with occupancy at 68 percent, and in danger of approaching 40 percent. The firm immediately began infusing the space with its signature hospitality aesthetic completing renovations of the lobby, façade and two pre-built office suites. Construction is also underway on a club-like lounge space on the 8th floor – branded the Leonard Lounge – as part of the $7 million repositioning at 545 Madison.
“When we took control of 545 Madison, we wasted no time in planning and executing a hospitality-rich renovation to transform the space into one of the most sought-after office properties in Manhattan,” said Craig Deitelzweig, president and CEO of Marx Realty. “Leasing velocity and demand at 545 Madison has far exceeded any reasonable expectations and proves the flight to quality is very real. In fact, there were existing tenants who had one foot out the door before we shared our plans. Existing tenants finalized extensions based on our strong reputation in the sector and we completed construction swiftly, even in the face of a global pandemic. The value of speedy and distinctive office building redesign is immeasurable.”
A Cushman & Wakefield team led by Tara Stacom represented Marx in each of the following transactions and asking rents ranged from $84-101 per square foot:
- Vialto Partners, a spinoff of Price Waterhouse Coopers, signed a new lease for 8,000 square feet on the 14th floor. David Dusek of Cushman & Wakefield represented the tenant.
- Qurate Retail Group (formerly HSN) extended its lease across two floors comprising 12,000 square feet. Ramsey Feher of CBRE represented the tenant.
- Ogden Capital, the largest tenant at 545 Madison, recommitted to 42,000 square feet occupying the entire 7thfloor. There was no tenant broker.
- Corniche Growth Advisors signed a new lease for 6,500 square feet on the 8th floor of 545 Madison, where the new club lounge will come to life in the coming months. Corey Horowitz and Jonathan Tootell of SquareFoot represented Corniche Growth Advisors.
- A well-known private equity firm signed a new lease for 8,000 square feet at 545 Madison. Paul Glickman and Kristen Morgan of JLL represented the tenant.
“Marx has set a new benchmark for the office experience,” said Deitelzweig. “As leasing velocity across our portfolio remains incredibly strong, it’s clear that tenants have a true appreciation for this remarkable aesthetic and truly special spaces as the workforce returns to in-person work.”
The top-to-bottom renovation at 545 Madison – including a reimagined lobby, sleekly styled pre-built office suites and, coming soon, a 7,000-square-foot indoor/outdoor club space – offers a contemporary experience that transcends the commodity office tower experience. Marx Realty reinvented the lobby space at 545 Madison by infusing it with warm materials and soft curves while a uniformed doorman attends the entry doors leading to a space replete Marx’s signature scent, sophisticated mood music and soothing lighting to round out the sensory experience. A variety of seating options and a well-stocked library of finance, fashion and design books help create a sense of community in the building.
The club space will be branded the “Leonard Lounge” and is a strong differentiator for tenants. The inviting lounge space, reminiscent of a members-only club, will include a ceiling suspended fireplace, bar seating overlooking a 2,000-square-foot landscaped terrace and a 40-seat boardroom. The Leonard Lounge will provide tenants the option to work by day or unwind with an evening cocktail in a space outside of the traditional office setting. Intimate seating options, warm walnut wood and bronze finishes and Marx Realty’s signature scent will punctuate the hotel-like experience while a café with built-in appliances will afford tenants the ability to host catered events. And, in connection with each new lease, as part of its continuing efforts to foster a healthy environment, Marx will plant three new trees in the local community.
David Burns and Kristin Kaiser of Studios Architecture worked with Marx Realty’s in-house design team to reimagine the lobby and amenity spaces at 545 Madison.
Additional tenants at 545 Madison include private equity firm Snow Phipps, Strike GTS and top-tier wealth management companies.
Marx Realty Renovates 545 Madison into Pandemic-Era Repositioning Success
Marx Realty‘s 545 Madison Ave. in Midtown Manhattan stacks up as a pandemic-era repositioning success story. The New York-based owner-developer acquired the property in December 2019 with occupancy at 68% and in danger of falling to 40%. With 76,500 square feet of new and extended leases, 545 Madison is now 100% occupied.
“When we took control of 545 Madison, we wasted no time in planning and executing a hospitality-rich renovation to transform the space into one of the most sought-after office properties in Manhattan,” said Craig Deitelzweig, president and CEO of Marx Realty. “Leasing velocity and demand at 545 Madison has far exceeded any reasonable expectations and proves the flight to quality is very real.”
A Cushman & Wakefield team led by Tara Stacom represented Marx in each of the following transactions:
- Vialto Partners, a spinoff of PriceWaterhouseCoopers, signed a new lease for 8,000 square feet, represented by Cushman & Wakefield’s David Dusek.
- Qurate Retail Group extended its 12,000-square-foot lease, represented by CBRE’s Ramsey Feher.
- Ogden Capital, 545 Madison’s largest tenant, recommitted to 42,000 square feet. There was no tenant broker.
- Corniche Growth Advisors signed a new lease for 6,500 square feet , represented by Corey Horowitz and Jonathan Tootell of SquareFoot.
- A well-known private equity firm signed a new lease for 8,000 square feet, represented by JLL’s Paul Glickman and Kristen Morgan.
Chick-fil-A hatching in Midwood
July 20, 2022
Brooklyn location will be company’s first ground-up location in NYC.
Chick-fil-A is reinventing its New York City retail menu, attempting its first ground-up development in the city.
The fast food chain signed a 20-year, 6,000-square-foot lease at 1573 Flatbush Avenue in Brooklyn’s Midwood location, the New York Business Journal reported. The site is owned by Marx Realty.
The asking rent for the lease wasn’t disclosed, but the outlet noted rents in the area tend to fall between $90 and $125 per square foot.
The site houses a three-story office building, which will be demolished to make way for Chick-fil-A. It’s not clear when the location will open, but it can’t be soon enough for a company recently recognized as the nation’s favorite fast food chain.
Marx Realty Signs Chick-Fil-A to First Standalone NYC Location
July 19, 2022
Marx Realty (MNPP), 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, standalone 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 VP of leasing Henry Henderson and by Michael Friedman of Inline Realty. Jeremy Ezra of Newmark represented Chick-fil-A, which previously opened an inline Brooklyn location in 2019. Most of the chain’s dozen-plus New York City locations are in Manhattan.
Marx Realty Brings Chick-fil-A to Brooklyn !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.