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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.
Marx Realty Acquires D.C.’s Herald Building with Transformation PlansApril 16, 2020
New York City-based Marx Realty has acquired The Herald Building in Washington, D.C. for $41 million. The firm plans to invest an additional $41 million in adding a hospitality-infused aesthetic throughout the 114,000-square-foot building, which was built in 1923 to house the offices and printing presses of the Washington Herald Examiner.
“The Herald Building is such an exceptional building both in its incredibly high ceiling heights and in its important history,” said Craig Deitelzweig, president and CEO of Marx Realty. “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.”
Marx cites its repositioning of 10 Grand Central in Midtown Manhattan as a model for its plans at The Herald Building. Asking rents will be in the range of $60 to $72 per square foot.
UPROXX Takes 7th Floor at Lower East Side BuildingThe Warner Music Group-owned company is relocating from a subleased space within the building.
By Erika Morphy April 15, 2020
NEW YORK—Marx Realty has secured entertainment and culture news website UPROXX as a tenant at 161 Bowery on the Lower East Side. UPROXX signed a three-year lease for the building’s seventh floor, taking 3,300 square feet.
Asking rent was $81 per square foot. The Warner Music Group-owned company is relocating from a subleased space within the building.
Marx Realty acquired both 135 and 161 Bowery streets in 2018 as part of the company’s strategy to expand its commercial real estate portfolio. Both buildings are one block away from each other in the coveted Bowery neighborhood.
161 Bowery is a seven-story building originally built in 1920 and redeveloped in 2016 that offers street-level retail and office spaces distributed over 25,000 square feet.
The building is located in an area that has become a hub for companies in the media and tech sectors. It is also close to Nolita, the East Village and SoHo.
UPROXX joins a number of tenants that include social media giant Kik Interactive, advertising firm Space 150, multinational educational startup Brainly, as well as Mark Fisher Fitness on the ground floor.
This Week’s N.Y. Deal SheetTOP LEASES
Warner Music Group’s entertainment and pop culture news website UPROXX leased 3,300 SF at Marx Realty’s 161 Bowery, the landlord announced. The asking rent in the deal was $81 per SF, and the company is moving from subleased space within the building. There were no brokers on the deal.
Media Firm Uproxx Signs Lease at 161 BoweryBY CHAVA GOURARIE April 14, 2020
The pop culture website Uproxx signed a three-year lease at Marx Realty’s 161 Bowery on the Lower East Side, the landlord announced.
Uproxx, a subsidiary of Warner Music Group, will occupy 3,300 square feet on the top floor of the seven-story property, located between Delancey and Broome Streets. The firm is relocating from a subleased space within the building.
Asking rent at the property was $81 per square foot. There were no brokers involved in the transaction, according to Marx.
“We are delighted that UPROXX committed to 161 Bowery,” Marx Realty’s Craig Deitelzweig said in a prepared statement. “The news media company joins an impressive and diverse roster of tenants and is a prime example of the demand for this space in a neighborhood that has transformed into a hub for companies in the media and tech sectors.
Marx Realty acquired the building, along with the nearby 135 Bowery, for a combined $48.5 million in 2018. The 20,000-square-foot property, which was built in 1920 was redeveloped by the previous owner, Caspi Development, in an effort to market it as creative office space for tech tenants and startups.
Other tenants in the building include advertising agency Space 150, and online education platform Brainly. Previous tenants include social media appmaker Kik Interactive and the coworking space Meet on Bowery.
Marx Realty Launches Marx Connect, In Place For Bumpy Market RideBy Mariah Brown
NEW YORK CITY – New York-based real estate investment management firm Marx Realty has launched Marx Connect, a mobile application it is rolling out to all of its buildings that allow tenants access to respective properties by scanning via Bluetooth. This new offering comes to prevent the touching of building hardware as landlords look for ways to curb the spread of the coronavirus to their properties, Craig Deitelzweig at Marx, tells GlobeSt.com.
“We continue to ramp up the cleaning and disinfecting of our common spaces, and we are looking at ways to decrease the customer’s need to touch regularly used building materials,” Deitelzweig said. “For example, we have long had a doorman at our buildings, this allows the tenants and guests to avoid touching door hardware.”
As current events unfold with the coronavirus pandemic, understandably, there is a lot of uncertainty and lack of visibility in the market right now that has led to knee-jerk reactions, Deitelzweig said. “It is important to not panic and calmly navigate the next few months, which will be bumpy in the short term.”’
About the $2 trillion stimulus package Congress has passed, Marx is hopeful that the unprecedented stimulus, together with the Federal government’s liquidity infusion, will result in a strong fourth-quarter gross domestic product, which will serve as a harbinger of a solid recovery in 2021, Deitelzweig said.