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April 15, 2022
HLTH, conference organizer for the health care industry, has more than doubled its space at 10 Grand Central in Midtown Manhattan, signing a a 12,000-square-foot lease expansion and seven-year renewal at the office tower.
HLTH is expanding from 7,000 square feet to 19,000 square feet on the sixth and seventh floors. Led by Jonathan Weiner, the founder of Money 20/20 and a venture partner at Oak HC/FT, a $1 billion growth equity venture fund, HLTH relocated from 90 Park Avenue to 10 Grand Central in 2019.
Owner and developer Marx Realty said it also signed an additional 15,000 square feet of additional new leases at the property. They include:
- LIV Golf Inc.: the golf investing company signed a 5,212-square-foot, three-year lease
- Family Management Corp.: the investment advisor signed a 4,782-square-foot, five-year lease with on the 21st floor;
- Kasa Living: the real estate technology company a signed 2,327-square-foot, three-year lease on the 21st floor;
- Mediterranean restaurant CAVA, which will occupy 2,600 square feet of street-level space with frontage on the corner of 44th Street and Third Avenue.
April 12, 2022
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced that the largest conference organizer for health innovation, Hlth, has signed a 12,000-square-foot lease expansion and seven-year renewal at its 10 Grand Central office tower in Midtown Manhattan.
Hlth expands its footprint from 7,000 square feet to 19,000 square feet on the sixth and seventh floors. Marx Realty announced it has also signed an additional 15,000 square feet of additional new leases at the property.
Led by Jonathan Weiner, the founder of Money 20/20 and a venture partner at Oak HC/FT, a $1 billion growth equity venture fund, Hlth relocated from 90 Park Avenue to 10 Grand Central in 2019 on the heels of Marx Realty’s announcement of the Beaux-Arts building repositioning.
“Hlth’s significant expansion, along with the building’s brisk leasing activity, is a testament to the appeal of our game-changing hospitality-infused office design sensibility and we’re excited to welcome a remarkable collection of new tenants at 10 Grand Central,” said Craig Deitelzweig, president and CEO of Marx Realty.
Marx Realty also announced a 5,212-square-foot, three-year lease for golf investing company Liv Golf Inc. taking the entire 32nd floor, part of 10 Grand Central’s exclusive Penthouse Collection. The most recent addition at 10 Grand Central, the Penthouse Collection, was developed during the pandemic and consists of 20,000 square feet of ultra luxurious penthouse offices on floors 32 through 36. Floors 32 and 33 have been officially delivered while the rest of the collection is expected to be delivered later this year.
Additional new leases include a 4,782-square-foot, five-year lease with investment advisor Family Management Corp on the 21st floor and a 2,327-square-foot, a three-year lease for real estate technology company Kasa Living on the 21st floor. The building also welcomes Mediterranean restaurant Cava, which will occupy 2,600 square feet of street-level space with frontage on the corner of 44th Street and Third Avenue; the restaurant joins a wide-ranging number of food and retail options at street level, as job creators increasingly seek to provide a welcoming office experience for the workforce. Cava joins Little Collins Australian café as one in the array of café offerings for its tenants.
Marx Realty Signs Expansion and Extension at 10 Grand CentralApril 16, 2022
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, says the largest conference organizer for health innovation, HLTH, has signed a 12,000-square-foot lease expansion and 7-year renewal at the 10 Grand Central office tower in Midtown Manhattan.
HLTH expands its footprint from 7,000 square feet to 19,000 square feet on the sixth and seventh floors. Marx Realty announced they have also signed an additional 15,000 square feet of additional new leases at the property.
Led by Jonathan Weiner, the founder of Money 20/20 and a venture partner at Oak HC/FT, a $1 billion growth equity venture fund, HLTH relocated from 90 Park Avenue to 10 Grand Central in 2019 on the heels of Marx Realty’s announcement of the beaux-arts building repositioning.
The expanded new space and long-term renewal will allow the company to expand its function into a premier fintech hub for the city.
HLTH Inks Renewal, More Than Doubling its Footprint, at Marx Realty’s Hospitality-Inspired 10 Grand Central Office Tower
Marx Realty (MNPP), a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced the largest conference organizer fo health innovation, HLTH, has signed a 12,000-square-foot lease expansion and 7-year renewal at the iconic 10 Grand Central office tower in Midtown Manhattan. HLTH expands its footprint from 7,000 square feet to 19,000 square feet on the sixth and seventh floors.
Marx Realty announced they have also signed an additional 15,000 square feet of additional new leases at the property.
Led by Jonathan Weiner, the founder of Money 20/20 and a venture partner at Oak HC/FT, a $1 billion growth equity venture fund, HLTH relocated from 90 Park Avenue to 10 Grand Central in 2019 on the heels of Marx Realty’s announcement of the beaux-arts building repositioning. The expanded new space and long-term renewal will allow the company to expand its function into a premier fintech hub for the city.
“HLTH’s significant expansion, along with the building’s brisk leasing activity, is a testament to the appeal of our game-changing hospitality-infused office design sensibility and we’re excited to welcome a remarkable collection of new tenants at 10 Grand Central,” said Craig Deitelzweig, president and CEO of Marx Realty.
Marx Realty also announced a 5,212-square-foot, three-year lease for golf investing company LIV Golf Inc. taking the entire 32nd floor, part of 10 Grand Central’s exclusive Penthouse Collection. The most recent addition at 10 Grand Central, the Penthouse Collection, was developed during the pandemic and consists of 20,000 square feet of uber-luxe penthouse offices on floors 32 through 36, which offer exceptionally designed suites and an elevated aesthetic not yet seen in the market. Floors 32 and 33 have been officially delivered while the rest of the collection is expected to be delivered later this year.
Additional new leases include a 4,782-square-foot, five-year lease with investment advisor Family Management Corp on the 21st floor; and a 2,327-square-foot, a three-year lease for real estate technology company Kasa Living on the 21st floor. 10 Grand Central also welcomes Mediterranean restaurant CAVA, which will occupy 2,600 square feet of street-level space with frontage on the corner of 44th Street and Third Avenue; the restaurant joins a wide-ranging number of food and retail options at street level, as job creators increasingly seek to provide a welcoming office experience for the workforce. Cava joins Little Collins Australian café as one in the array of café offerings for its tenants.
“10 Grand Central reset the bar for hospitality-focused office design in 2019 and we are proud to have created an entirely new asset class through our signature hospitality-infused approach to office space, a strategy that is proving successful at other Marx-owned buildings including the recent repositioning of 545 Madison in New York as well as The Herald in Washington D.C. and The Department Building in Atlanta” added Deitelzweig.
Marx Realty’s $48 million redesign of the 35-story, Ely Jacques-Kahn designed 10 Grand Central was completed in 2019 and has positioned the building as one of Midtown’s most exciting office offerings, attracting tenants from both modern and traditional office buildings. Among the building’s most impressive features are the four-story entry portal boasting a soaring marquee and oversized walnut doors attended by a uniformed doorman, a 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. From top to bottom, the building exudes high-end hotel vibes.
10 Grand Central’s notable newcomers join an already impressive and diverse roster of tenants, including content targeting company ZEFR; weekly online news magazine The Week; communications consultant Montieth & Company; 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, international news agency Agence France-Presse; UK-based sports private equity firm 23 Capital; asset management firm Everside Capital Partners; educational technology company Decoded; and, health-conscious salad chain, Sweetgreen.
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.
Manhattan commercial leasing activity rises 100% in Q1 from last yearApril 10, 2022
By Steve Cuozzo
Commercial real estate transactions have picked up recently, according to some measures, including a lease signed at the Deutsche Bank Center. By Christopher Sadowski for NY Post
Like the proverbial elephant examined by five blind men, the 460 million square-foot Manhattan office market lends itself to many different interpretations. There’s a statistic to support every perspective.
A new report from CBRE cheerfully cites a near 100% rise in year-over-year leasing activity for the first quarter of 2022. The 5.68 million square feet of transactions were up 96% over the first quarter of 2021.
Such large deals as IBM Inc. at 1 Madison Ave. (328,000 square feet), PDT Partners at 60 Columbus Circle and Celonis at 1 World Trade Center (75,000 square feet) suggest a major market rebound.
Average Midtown asking rents climbed 2% over the previous quarter. Midtown South leasing volume was up for the third straight quarter. Downtown’s quarterly absorption was positive for the first time since the third quarter of 2019.
All good news, right? But there’s a different take in JLL’s latest “Office Insight” letter. The brokerage found rising vacancies across the board, due in part to sublease additions surpassing demand.
It noted that first-quarter leasing was higher than in early 2021 but 25% below the fourth quarter.
Large new sublease availabilities “pushed vacancy up to the highest levels recorded since the onset of the pandemic at 15.2 percent.”
Neither set of data is wrong — it’s rather a matter of choosing which facet of the market to emphasize.
Meanwhile, Placer.ai, a site that tracks office building foot traffic, reports a huge 102% increase in foot traffic to Manhattan office buildings in February over the same month in 2021. But the traffic was still 46.7% under January 2020, just before the pandemic struck.
“The city is springing back to life as of the beginning of April, but it’s been slow going,” the site said.
In one of the year’s largest new subleases, Phaidon International is taking 71,239 square feet at SL Green’s 711 Third Ave. The global specialist recruitment agency will move from 622 Third Ave., where the firm had only about half as much space.
Cushman & Wakefield’s David Mainthow represented Phaidon. JLL repped the sublandlord, the Stagwell Group.
Phaidon CEO Harry Youtan said the move “is the next step of an exceptional eight years of growth in New York. It will allow us to hire and develop 200 additional staff, taking our New York team to 500 in total.”
“The space was delivered in move-in ready condition, resulting in little upfront capital investment and construction time, which offered a great solution for Phaidon’s thriving business,” said Mainthow.
The new address is a 592,772 square-foot tower one block from Grand Central Terminal. It was renovated with improvements that include new elevator cabs, large windows and a three-level parking garage.
Marx Realty’s 10 Grand Central, a 500,000 square-foot Midcentury tower at Third Avenue and East 44th Street, continues to fill up — thanks to a recent, $48 million capital improvement program and repositioning.
Of 34,000 square feet of newly signed and expanded leases, the largest was a 12,000 square-foot expansion of HLTH, a conference organizer for health innovation. The new lease, plus a renewal on space it already had, upped the firm’s footprint in the building from 7,000 to 19,000 square feet.
Marx also signed 15,000 more square feet for LIV Golf Inc, Family Management Corp and Kasa Living. On the retail front, fast-casual Mediterranean eatery CAVA is coming to 2,600 square feet of ground-floor corner space.
Marx converted more than half of 46 previously unused outdoor terraces for tenant use. Upgrades also include a new, four-story entry portal on East 44th Street with walnut doors leading into a sleek lobby, and an indoor-outdoor club floor with its own lounge, conference space and landscaped terrace.
One additional sweetener: Israeli-made “Solato” machines that let tenants make multi-flavored gelato in a matter of seconds. Realty Check can attest that the vanilla, at least, is the real deal.
About 65,000 square feet remain available — which pleases Marx CEO Craig Deitelzweig, since old tenants were paying rents far below today’s market. Asking rents at 10 Grand Central now range from $65 to $120 per square foot.
Marx Realty finalizes 40,000 s/f lease with SUNY WCCFebruary 22, 2022
Yonkers, NY Marx Realty, an owner, developer and manager of office, retail and multifamily property across the U.S., has finalized a 10-year, 40,000 s/f lease at Cross County Center with SUNY Westchester Community College (SUNY WCC). The college will occupy the third floor of the new Target building and is expanding its footprint at Cross County Center by 30,000 s/f to allow for more extensive classroom operations, including additional degree and certification programs, at the Center.
The 1.15 million s/f Cross County Center is jointly owned by Marx Realty and Benenson Capital Management and was one of the first open-air shopping centers in the U.S.
“Cross County Center has always been so much more than a top shopping destination,” said Craig Deitelzweig, president and CEO of Marx Realty. “We are committed to a future-focused approach that fills a need in the region for an entertainment and lifestyle destination.”
with offerings that range from dining and entertainment to traditional retail spaces. We are thrilled to see existing tenants such as SUNY Westchester Community College committing to a long-term presence that will ultimately bring added foot traffic to the Center while providing much-needed services to the community.”
This expansion comes a year after Marx Realty revealed Target’s 40-year, 130,000 s/f lease, one of the largest retail leases in the tri-state area in 2020. Target at Cross County will be the retailer’s first location in the city when it opens in late 2022 and, together with the SUNY WCC expansion, is part of a multi-phase plan focused on furthering the center’s ‘town square’ concept, creating safe, healthy, and dynamic spaces for residents and visitors from the Tri-State area and beyond.
“Retailer confidence in Cross County Center is bolstered by our efforts to bring a diverse mix of tenants to the location and provide an environment designed for success well into the future,” said Jim Stifel, chief investment officer of Benenson Capital. “We are committed to giving both tenants and visitors an experience like none other and offering a wide variety of shopping, dining and entertainment options to maintain the high levels of foot traffic we experienced even as the nation was just emerging from the pandemic.”
The outdoor lifestyle center is located at the intersection of Cross County Parkway and I-82, attracting over 14 million visitors annually from the tri-state region. Cross County Center has attracted many of the top names in retail and dining including the first Shake Shack and only Zara location in the county.
Cross County Center has seen a flurry of new and expanded leases in the last year. Topping the list of tenants is Forever 21 which signed a 29,720-square-foot lease while A?X Armani Exchange signed a 7-year renewal for their 5,025-square-foot space in the center. Additional firms re-committing to Cross County include fashion brands Express and American Eagle, with 8,330-square-foot and 7,340-square-foot renewals respectively; an 810-square-foot lease for Cohen’s Fashion Optical; a 1,832-square-foot lease with Five Guys; and a 375-square-foot lease for local dessert shop favorite Cookies’N’Cream. H&M also signed a 10-year lease renewal to occupy 28,000 square feet where the retailer has incorporated its urban SOHO concept and is invested $5 million in the location.
“Foot traffic at the center remained robust even as the nation in general, and the retail sector more specifically, were recovering from the pandemic,” said Deitelzweig. “The open-air experience combined with the diverse tenant mix and our vision for the future of this asset have caught the eye of major retailers, eateries and experiential users and we are in negotiations with several well-known brands who are keen on planting a flag at Cross County. We are confident that the evolution of Cross County Center will serve as a benchmark for the future of brick-and-mortar retail.”
Marx Realty Acquires 110K-SF DC Office Building for $27M
February 14, 2022
By: Lisa McDuffie
Marx Realty has acquired the office building located at 2121 Wisconsin Avenue NW in Washington, DC for a reported $27 million. According to public records, the property’s most recent owner was JBG Smith.
The 110,000-square-foot building was built in 1960 and renovated in 2000 with the addition of a new lobby as well as elevator modernization, cab renovation and a roof rehabilitation.
Marx Realty was attracted by the building’s tenancy, including two TV broadcasting stations as this sector is particularly attractive to today’s owner/operators, noted the company.
“We firmly believe in the strength of the DC office market, and this is a solid asset for our portfolio given the building’s terrific ceiling heights and column spacing,” said Craig Deitelzweig, president and CEO of Marx Realty. “Throughout the District, and really across the country, we’re seeing a flight to quality that supports tenant confidence in a return to in-person work in some form, and we’re looking to expand our DC portfolio.”
This Week’s D.C. Deal SheetFebruary 11, 2022
By Jacob Wallace
New York-based Marx Realty acquired its second D.C. property since the pandemic began, acquiring an office building at 2121 Wisconsin Ave. NW in a $27.7M deal. The six-story, 110K SF office building is anchored in part by Nexstar Media Group, which recently expanded its footprint to nearly 29K SF. The building was built in 1960 and renovated in 2000. Marx said it was attracted by the strong tenancy and location in the Georgetown/Glover Park neighborhood. Drew Flood of Cushman & Wakefield represented the seller, JBG Smith, in the sale and Jack Kraus, Paul DiCarlo and Nick Romanoff of Marx represented the buyer, Commercial Observer first reported.
PODCAST: How Office Owners Are Trying To Make Us Fall In Love With The Workplace AgainBisnow’s audio series, Bisnow Reports, examines every facet of the international commercial real estate industry — from the murky future of retail and office to real estate’s reckoning with diversity to the effects of climate change on the built world, and so much more. You can subscribe on iTunes, Spotify and Amazon Music, or scroll down to listen in your browser.
Landlords are under pressure to make their offices more appealing than employees’ homes.
The nation’s office owners are engaged in a serious courtship right now, hoping to woo the most important people in their life: their tenants.
This Valentine’s Day on Bisnow Reports, we are talking about the diminished allure of the office and how landlords are working to rekindle the spark to encourage workers to come back to their desks.
“The romance of the office is really no different than any other romance in life. It’s about making connections that create an emotional response,” said Lindsay Ornstein, the co-founder of OPEN Impact Real Estate. “For all of the efficiencies and ease of technology and working from home, you cannot replicate the people component of work.”
That hasn’t moved most people. Occupancy, while climbing, remains low: In the last week of January, office occupancy in the biggest U.S. office markets was 33%, according to Kastle Systems. The pressure is on landlords to create an environment that is better than what an employee could create at home.
“We want our office space to have those special moments and special places that you can kind of cuddle up and have your cappuccino in the morning,” Marx Realty CEO Craig Deitelzweig says on the podcast. “Those are kind of words that you wouldn’t necessarily hear 10 years ago in office space: sexy or moody.”
New York rehabber buys Glover Park office building
February 10, 2022
By Tristan Navera
A lot of real estate transactions cross our desks at the Washington Business Journal. We can’t devote full stories to them all, but some deserve to be on the record. Welcome to Deal Dash.
Glover Park building next up for New York rehabber
BG Smith owns the six-story, 110,000-square-foot 2121 Wisconsin Ave.
Marx Realty, the New York-based company most recently known for renovating 1307 New York Ave. NW downtown, has a new project. It recently bought the six-story, 110,000-square-foot office building at 2121 Wisconsin Ave. NW for $27.7 million from JBG Smith Properties (NYSE: JBGS), according to public records.
The building was built in 1960 and most recently renovated in 2000. Marx said it was attracted to the tenants there — NexStar Media Group, the major tenant, recently signed a lease for an additional 28,766 square feet on the third floor while language immersion school CommuniKids added 8,900 square feet. Marx, which undertook an extensive renovation of 1307 New York, didn’t go into detail on what its renovation plans would be for the Glover Park property, but said it’s been looking to expand its local holdings and that this was an attractive project given the “flight to quality” in the office world.
“This is a solid asset for our portfolio given the building’s terrific ceiling heights and column spacing,” said Craig Deitelzweig, president and CEO of Marx Realty. “We’ll continue to reimagine unique and special office assets with wide appeal for today’s discerning tenants.”