Contact
May 05, 2020
Manhattan, NY According to Craig Deitelzweig, president and CEO of Marx Realty (MNPP), Rubric Capital signed a 5,800 s/f, seven-year lease on the 16th floor at 10 Grand Central. Rubric Capital secured the last of the Marx Realty’s pre-built suites at 10 Grand Central as the firm begins to attract companies to fill its Penthouse Collection being built out on the 32nd-36th floors.
“We are thrilled to welcome Rubric Capital to 10 Grand Central,” said Deitelzweig. “This hedge fund joins a truly remarkable roster of tenants that includes well-known firms representing industries ranging from media and technology to financial and business service entities. The repositioning continues to draw high-profile tenants attracted to 10 Grand Central’s first-of-its-kind hospitality-infused aesthetic.”
Marx Realty has signed 184,000 s/f of new leases since announcing the building’s repositioning in mid-2018. Since the announcement, occupancy has increased from 78% to 95%. The $48 million repositioning of the 36-story Ely Jacques-Kahn designed 1930’s office tower included a redesigned four-story entry portal, marquee, lobby, lounge, outdoor terrace, and expansive conference space.
The new façade’s marquee feature brass fins and oversized walnut doors, which are attended by uniformed doormen. The lobby’s walnut wood, brushed brass, and polished concrete accents evoke a luxury hotel vibe that continues throughout a suite of hospitality-styled amenities on the seventh floor. The lounge boasts oversized artwork and a café complete with built-in appliances as well as furnishings fashioned in “Grand Central Green,” in a nod to the building’s proximity to Grand Central Station. In addition, the lounge also includes a 40-seat conference facility and opens to the Ivy Terrace, an inviting outdoor space reminiscent of a 1930s era garden party.
Cynthia Wasserberger, Sam Seiler, David Kleiner, and Carlee Palmer are leading the team handling the leasing for Marx Realty. Rubric Capital was represented by Cushman & Wakefield. The asking rent for the space was $88 per square foot.
Rubric Capital joins tenants including Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions (as reported by the NYPost.com); UK-based sports private equity firm 23 Capital; asset management firm Everside Capital Partners; educational technology company Decoded; weekly news magazine The Week & Dennis Publishing, communications consultant Montieth & Company; investment firm Benenson Capital Partners; and advertising association powerhouse ANA.
Major landlords are split on mandatory temperature-taking as offices look to reopen. Here’s why some are worried about effectiveness, privacy, and liability.Daniel Geiger – April 30, 2020
- As reopening the workplace draws nearer, major landlords are split on what type of screening protocols they will use to help prevent a resurgence of the coronavirus.
- Popularized in Asia, temperature-taking has become a common screening method that some landlords say they will impose on workers and visitors as they enter office buildings.
- But checking for fever brings up privacy, logistical, and liability issues that have made some major owners wary.
- Landlords say that a lack of protocols from government has created confusion around the issue.
With an end to the coronavirus lockdown in sight, major commercial landlords remain split on the kind of screening they should employ to make sure tenants and visitors don’t carry Covid-19 into the workplace and reignite the pandemic that’s caused over 60,000 deaths in the United States.
In China, which beat back the virus in recent months with aggressive measures to shelter and contain its civilians, health officials and government workers popularized the widespread practice of taking temperatures to check for fever — a potential sign of infection.
As business leaders and officials have looked to Asia for protocols that are effective in managing infection rates while restarting commerce, some New York City landlords have touted the same idea of temperature-taking as a prudent step.
The technology exists to efficiently scan workers and guests using heat-sensitive cameras as they pass through a building’s lobby, without them even knowing their temperatures are being read. The screening method, however, invites logistical, privacy, and liability issues that have contributed to reluctance among some large office owners.
“If you’re refusing someone entry to a building because they have a temperature, you could be violating HIPAA,” said John Santora, the president of Cushman & Wakefield tri-state operations, referring to federal laws that dictate the privacy rules for medical information. “We just had a roundtable with 20 different landlords and there’s a big disparity there. The larger landlords want it, but others are opposed.”
Taking on the role of medical gatekeeper also has landlords worried that they’ll be accused of negligence if they fail to catch an infected person entering the workplace.
“I was talking to one office building owner who literally wants visitors and occupants to sign a waiver not to hold him liable if they were to catch covid while in the building,” said Craig Deitelzweig, the president and CEO of Marx Realty, an office owner in the city.
Deitelzweig said Marx Realty plans to install temperature readers in the lobbies of its office portfolio, including 10 Grand Central and 430 Park Avenue. The cameras can detect whether a person is warmer than normal. Deitelzweig said that a lobby attendant will approach any person flagged by the cameras and ask them to take a more accurate reading using a no-touch thermometer. The protocol will be loosely enforced, he said.
“We’re going to take temperatures because we would rather be on the side of doing the extra thing,” Deitelzweig said. “But if someone said ‘I’m not allowing you to take my temperature,’ we’re not going to force it.”
Senior executives at Silverstein Properties, a major Manhattan landlord that owns a multi-million-square-foot portfolio of commercial space, including three office towers at the World Trade Center, said it would likely pass on temperature-taking altogether within its portfolio.
“We have decided we’re not going to temperature test,” said Marty Burger, Silverstein Properties’ CEO. “It opens us to more liability and raises more questions than anything else. What happens if someone has a temperature? Do you have your building people deal with it? Is it up to the tenant? Maybe they have a disability and that’s why they’re warm and maybe they do have a fever but took an Advil and they brought it down and aren’t flagged. We’re just not confident we could get it right.”
Several owners see the need for a roadmap handed down by state and city governments to navigate the health concerns and screening measures in a post-Covid world.
“We’re setting up a whole new round of policies and procedures that all of our tenants have to comply with,” said Scott Rechler, chairman and CEO of the large commercial landlord RXR Realty, which said it will screen temperatures. “But what do you do if someone has a temperature? This is where having government guidance would be helpful.”
So far, neither Governor Andrew Cuomo’s nor Mayor Bill de Blasio’s offices have released specific guidelines on workplace safety measures to protect against the pathogen. On Tuesday, Cuomo announced the creation of an advisory board that includes members from the real-estate industry that will weigh in on questions of protocol that should be adopted as the economy is reopened in the coming weeks.
enCappture Mobile Technology Helps Ease Pandemic Woes, Keeps Businesses Connected with Customers 24/7NYC tech firm CEO, Denise DiSano, donates mobile app, enCappture, to Armonk CoC to help provide local businesses with vital info needed to sustain operations.
LONG BEACH, NY, UNITED STATES, April 27, 2020 /EINPresswire.com/ — Just weeks ago, the COVID-19 pandemic forced the world into global self-quarantine, shuttering millions of brick and mortar businesses and impacting commerce across the US. Businesses scrambled to become hyper-digital, using all forms of online channels to provide information, products, services, and entertainment to consumers 24/7. Seeing the need to help small businesses in her hometown of Armonk, New York, enCappture’s CEO, Denise DiSano, donated her company’s app technology – enCappture – to the Armonk Chamber of Commerce (ACoC) to help the Chamber provide local businesses with vital information necessary to sustain operations during these economically challenging times.
DiSano, a life-long Armonk resident, donated her NYC tech firm’s mobile app technology because she has seen how useful it has been as a communication tool for many of her clients during the current crisis. “With the rapid spread of the COVID-19 virus, I didn’t want to see our town suffer economically. As an ACoC member and a small business owner myself, I contacted our town’s Chamber of Commerce to see how I could help. After speaking with Chamber President, Neal Schwartz, it was clear to me that enCappture could be a tremendous asset in making sure businesses in our area get the support they need.”
Schwartz was thrilled to receive enCappture’s mobile app technology and is using the Chamber’s new app to flag businesses that are open and list things like hours of operation, menus, special discounts and other pertinent information. “Our app includes links to menus and local product and service offerings and also allows our local businesses and retailers to reach out to their customers directly using the app’s communication features. Plus, as the Chamber’s President, I use the app to communicate with members quickly about important Covid-19 related information including how to apply for SBA loans and other local and national resources available to them. With our app we can put vital information in the hands of our businesses and at the fingertips of their customers. It’s been a Godsend!”
DiSano has seen how enCappture’s mobile app technology can help all kinds of businesses communicate with stakeholders more effectively during the Covid-19 crisis. For example, Marx Realty, a commercial real estate development firm which recently launched their app, Marx Connect (with plans to introduce it across all of the company’s properties), is now working with the enCappture team on ways to ensure that tenants are more comfortable when they return to its buildings full-time. According to Marx Realty’s President and CEO, Craig Deitelzweig, “Initially, we intended to use Marx Connect to assist building tenants with expediting requests, processing visitor registration, booking building amenities, etc. but in the past few weeks we started working with the enCappture team on innovative ideas to use in-app features to streamline communication, provide essential information and give our tenants peace of mind.“ The company described its plans in a recent GlobeSt article. (Read Article Here).
Another enCappture client, Ken Colao of CNY Group, a large-scale construction and development firm, is using its enCappture app to engage employees and others working from home with polls and contests about how people are staying creative and productive in this new reality. “We wanted to foster productivity and purpose and stay close to our employees. Our enCappture app allowed us to do just that with user-generated, interactive content that inspires ingenuity and fosters connectivity at the same time.”
DiSano is gratified that enCappture’s clients are finding creative uses for their branded mobile apps, especially now, and looks forward to helping anyone launch their own app. “These are obviously very challenging times,” said DiSano adding, “businesses and organizations need to stay connected with their customers and members to sustain goodwill and continue building brand loyalty. Having a mobile app also ensures that people are well informed and feel heard, which is especially important when so many are self-isolating to keep themselves and others safe. We have the technology and will do everything we can to offer support wherever we can.
Beatrice Kimmel
Marx Realty Buys Iconic Herald Building in DCThe New York City-based firm is planning a $41 million renovation and repositioning of the historic property.
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily properties has acquired The Herald Building, a 114,000-square-foot 1920s-era office building in Washington, D.C., for $41 million and is planning to spend another $41 million renovate and reposition the asset to attract media, tech and financial services tenants.
The sellers were a group of education associations—the American Association of Colleges for Teachers Education, American Association of State Colleges and Universities, Council for Advancement and Support of Education and the National Association of State Universities and Land Grant Colleges, according to the Commercial Observer.
The transaction was a sale-leaseback deal giving the associations time to find new offices. The associations are slated to leave at the end of 2020. Marx Realty expects to be finished with its renovation by spring 2021, the Commercial Observer reported.
Located at 1307 New York Ave. NY, The Herald was built in 1923 in a Beaux-Arts style and is the former home of the offices and printing presses of the Washington Herald Examiner. Marx Realty, noted for its repositioning of 10 Grand Central in Manhattan, plans to enhance the historic elements of the building and add a hospitality aesthetic. Other plans include updating the entry portal with an intimate foyer that would open to an expansive lobby and lounge space with ample seating and 19-foot ceilings. Marx Realty will also add a library, banquette spaces, café with outdoor seating, 40-seat boardroom, 8,800-square-foot lounge and fitness center with private workout rooms.
EMBRACING SOCIAL DISTANCING
The firm said it expects asking rents to be in the $60 to $75 per square foot range. Marx Realty will be working David Burns of Studios Architecture, which repositioned 10 Grand Central and 545 Madison Ave. in Manhattan as well.
Craig Deitelzweig, Marx Realty president & CEO, said in a prepared statement the Herald Building is exceptional because of its very high ceiling heights and its important history. He expects to transform the building into a contemporary office space that has the look and ambiance of a luxury hotel. The firm will feature mood music and have its signature scent infused through the duct work.
In a nod to changes that will be necessary and/or expected in a post-COVID-19 world, Marx Realty will be using material like brass and copper that tend to be anti-microbial. The doorman and lobby personnel will work together to reduce the need for tenants and visitors to come in contact with surfaces. The company will also implement its proprietary Marx Connect software interface to minimize physical interaction.
Marx Realty owns 67 properties in 17 states with more than 5 million square feet of office, retail and residential space along with five mixed-use projects under development. The company has other assets in the metro D.C. area including 819 7th St. in the city and five northern Virginia properties.
Marx Realty Purchases The Herald Building for $41MThe former Washington Herald Examiner office building will undergo a $41 million aesthetic transformation, implemented by Marx Realty.
By Ingrid Tunberg | April 16, 2020 at 11:21 AM
Washington DC – Marx Realty has purchased The Herald Building in Washington DC in a $41 million transaction. The firm intends to invest an additional $41 million in the property to reposition the space with a hospitality-like aesthetic.
The 114,000-square-foot, Beaux Arts style building, built in 1923, previously hosted the Washington Herald Examiner’s offices and printing presses. Marx Realty plans to enhance the property’s historic elements and transform the space; intending to blur the lines between commercial office and luxury hotel.
The repositioning of the office building will encompass an updated entry portal and an expansive lobby with 19-foot ceilings. The asset will transform spaces including an 8,800-square-foot lounge, a fitness center with private workout rooms, a 40 seat board room on the ground floor, a new library, banquette spaces and a café with outdoor seating. The company will additionally implement its proprietary Marx Connect software interface at the property, in effort to minimize physical interaction.
Upon the repositioning, the company will employ asking rents of $62-72 per square foot at the property.
The project serves as a collaboration between Marx Realty and Studios Architecture’s David Burns. The partners previously worked together in the similar, aesthetic transformations of both 10 Grand Central and 545 Madison Avenue office towers in New York.
New York-based owner, developer and manager, Marx Realty is a division of Merchants National Properties. Founded in 1915, the firm’s current portfolio encompasses more than five million square feet of office, retail, multifamily and mixed-use space throughout 17 states.
BY KEITH LORIA APRIL 16, 2020 11:43 AM
Marx Realty has acquired The Herald Building, a 114,000-square-foot historic office building in Washington, D.C., for $41 million according to the New York-based firm.
The sellers were a joint venture of the American Association of Colleges for Teachers Education, the American Association of State Colleges and Universities, the Council for Advancement and Support of Education and the National Association of State Universities and Land Grant Colleges.
“This is a historic building and has a real heritage to it—we just fell in love with the building,” Craig Deitelzweig, Marx Realty’s president and CEO, told Commercial Observer. “We think it’s perfect for what Marx does and this will be the only building in all of D.C. that’s truly hospitality-infused throughout.”
Located at 1307 New York Avenue NW, the building was originally constructed in 1923 and once served as home to the Washington Herald Examiner’s offices and printing presses, thanks to its 19-foot ceilings on the ground floor.
Marx Realty plans to invest $41 million in the property, adding its signature hospitality-infused aesthetic into the building.
“The Herald Building is such an exceptional building both in its incredibly high ceiling heights and in its important history, and we couldn’t be more excited about our plans to transform the space into a contemporary destination for discerning tenants and bring the first hotel-like sensory experience to the D.C. office sector,” Deitelzweig said.
The space in the building was leased back to the associations, and at the beginning of 2021, Marx will get the entire building back. Construction on renovations starts in October with completion scheduled for the spring of 2021.
Among the changes will be the addition of a library, café, outdoor seating and 40-seat board room on the ground floor, offering the sophistication of a luxury hotel. Marx is also planning an updated entry portal with an intimate foyer that opens to an expansive lobby and lounge space. A doorman will welcome guests into the building.
There will also be an 8,800-square-foot lounge and a fitness center that features boxing and private workout rooms.
With the acquisition, Marx now has four D.C. buildings in its portfolio and five properties in Northern Virginia. Deitelzweig believes D.C. is the perfect place to invest in right now.
“In terms of jobs likely to be most resistant to a recession, those jobs are in D.C.,” he said. “This particular area we feel is the best part to be in. It hovers over the CBD and has great access to parks and restaurants and we just feel it’s ideal.’
Parker Lange, Vernon Knarr and Ben Plaisted from Savills teamed with CBRE’s Manny Fitzgerald to represent the sellers on the deal. Marx’s Paul DiCarlo and Jack Kraus handled things for the buyer.
JLL will handle leasing for the property.
Uproxx Signs 3,300 SF Office Lease in Manhattan’s Lower East Side“We’re already getting incredible interest in the building,” Deitelzweig said.
Posted on April 16, 2020 by Alex Patton
NEW YORK CITY — Entertainment and pop culture news outlet Uproxx has signed a 3,300-square-foot office lease in Manhattan’s Lower East Side. The company will occupy the entire seventh floor at 161 Bowery, a 25,000-square-foot office building originally built in 1920 and redeveloped in 2016. Uproxx, which is owned by The Warner Music Group, will relocate from a subleased space in the same building. Marx Realty owns the building. Both parties were represented internally in the lease negotiations.
LEASES: Janus welcomes GLUCK+ to Factory Districtby REW April 15, 2020
NEW YORK
Marx Realty announced that investment management firm Rubric Capital signed a 5,800 s/f, seven-year lease on the 16th floor at 10 Grand Central. Rubric Capital secured the last of the Marx Realty’s upscale pre-built suites at 10 Grand Central as the firm begins to attract companies to fill 25,000 s/f of its uber-luxury Penthouse Collection being built out on the 32nd-36th floors. The announcement was made by Craig Deitelzweig, president and CEO of Marx Realty. JLL’s Cynthia Wasserberger, Sam Seiler, David Kleiner and Carlee Palmer are leading the team handling the leasing for Marx Realty. Rubric Capital was represented byCushman & Wakefield. The asking rent for the space was $88 psf.
Downtown D.C. Office Building Sells For $42M Amid ‘Challenging’ TimesApril 14, 2020 Jon Banister, Bisnow Washington, D.C.
A New York real estate firm acquired a Downtown D.C. office building this week in a deal the broker said was made more difficult by the coronavirus pandemic and the ongoing economic crisis.
Marx Realty acquired the 1307 New York Ave. NW building from a group of education associations in a $41.5M deal posted Tuesday morning to the D.C. Recorder of Deeds.
The investor plans to spend another $41M renovating the property, Marx Realty CEO Craig Deitelzweig tells Bisnow.
The 106K SF office building was sold by a joint venture of the American Association of Colleges for Teachers Education, the American Association of State Colleges and Universities, the Council for Advancement and Support of Education and the National Association of State Universities and Land Grant Colleges.
The buyer secured a $25.6M loan from Ares Commercial Real Estate Management along with the acquisition, deed records show. Marx now owns four buildings in D.C, including the 819 Seventh St. NW property it acquired in September 2018. It also owns five properties in Northern Virginia.
“We want to buy more in D.C.,” Deitelzweig said. “We find D.C. attractive in terms of the jobs least likely to be impacted by COVID-19.”
Savills’ Parker Lange, Vernon Knarr and Ben Plaisted teamed up with CBRE’s Manny Fitzgerald to broker the deal on behalf of the seller. Lange said the economic uncertainty created by the coronavirus forced the team to work extra time to get the deal over the finish line.
‘Everyone Is Tense’: Office Owners Demand Proof Of Hardship As Tenants Seek ReliefApril 15, 2020 Miriam Hall, Bisnow New York
Across the country, businesses are coming to grips with economic pain on par with the Great Depression and social distancing requirements stretching for months, if not years.
For office landlords and their tenants, this new world order is particularly uncertain as extreme lockdowns roll into a second month in major markets like New York. Both sides are keen to protect their financial interests, and delicate, tense conversations about rent payments are taking place.
Though landlords are generally quick to tout how they view their occupiers as partners, many are now saying that if tenants want or are expecting some form of relief, they had better be prepared to prove they need it.
“We are asking ourselves the following question: ‘Is this an existential crisis or is this someone blowing smoke?’” said one New York City office building owner, requesting anonymity as negotiations are ongoing.