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April 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.
Investment manager takes pre-built space at 10GC
Marx Realty (MNPP) 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 25,000s/f of its Penthouse Collection being built out on the 32nd-36th floors.
“We are thrilled to welcome Rubric Capital to 10 Grand Central,” said Craig Deitelzweig, president and CEO of Marx Realty.
“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 percent to 95 percent.
Earlier this year, the company picked up the Renovated Building of the Year from the Building Owners & Managers Association for its work on 10 Grand Central.
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.
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 psf.
Rubric Capital joins tenants including Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions; 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.
As Stores Close, Landlords And Retailers Consider How Best To Stop The BleedingRetailers across New York City are closing, and amid the uncertainty and the layoffs, landlords are now faced with the choice of cutting their tenants loose, forgiving the rent or putting their faith in the government and insurance to pay them back down the road.
Restaurants and bars in New York City can now only serve takeout, while gyms, movie theaters and casinos have all been ordered to close. Thursday, Gov. Andrew Cuomo announced a new rule that requires companies to only allow 25% of their staff in the office, with some exceptions for businesses he has deemed essential.
Stores, though not legally forced to shut their doors, have been closing across the city — putting both landlords and retailers in a precarious position. Both are hoping that insurance companies will pay out or the government will step in with some sort of relief in order to blunt the economic pain.
“We are listening and tell them we are in it with them,” said Marx Realty CEO Craig Deitelzweig, whose company owns about 200K SF of retail space in the city. A few tenants have reached out, he said, but it is too early to say what course of action the company will take.
The retail market was already deeply strained in New York City, with widespread vacancies and multiple bankruptcies forcing closures. Retailers and landlords had been banking on a brighter 2020, with rents starting to come down and experiential and digital-native brands entering the market.
But the impact of the pandemic has been as brutal as it has been swift. Major national retailers like Macy’s, Nordstrom, Bloomingdale’s and Saks Fifth Avenue have all announced they will temporarily close.
Tuesday, Related closed its 1M SF mall at Hudson Yards, which opened a little over a year ago. Downtown’s Westfield World Trade Center — connected to a large public transit terminal — is still open, though its website notes most of its stores are temporarily closed. Brookfield Place, connected to Westfield via underground walkway, is still open, but with reduced hours.
Most of the stores at Staten Island’s Empire Outlets are now closed, and a spokesperson told Bisnow the new shopping center is “now evaluating how this new measure impacts our outdoor spaces.”
Marx’s Realty 10 Grand Central Nears Full-Building OccupancyNew York-based real estate investment management firm Marx Realty has signed 184,000 square feet of new leases at 10 Grand Central since the announcement of the 36-story building’s $48 million repositioning in mid-2018.
By Mariah Brown
Marx Realty’s 10 Grand Central.
NEW YORK CITY-New York-based real estate investment management firm Marx Realty has signed 184,000 square feet of new leases at 10 Grand Central since the announcement of the 36-story building’s $48 million repositioning in mid-2018. Since then, occupancy has increased from 78 percent to 95 percent.
The Ely Jacques-Kahn designed 1930’s office tower features a redesigned four-story entry portal, marquee, lobby, lounge, outdoor terrace and large conference space. Current tenants at the property include Dwayne “The Rock” Johnson’s production company Seven Bucks Productions, 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.
Just recently Craig Deitelzweig, president and CEO of Marx Realty, announced investment management firm Rubric Capital signed a 5,800-square-foot, seven-year lease on the 16th floor at 10 Grand Central, securing the last of the Marx Realty’s upscale pre-built suites at the property. Cushman & Wakefield representedRubric Capital for its new rental space, which has an asking rent of $88 per square foot.
“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.”
With this leasing milestone, Marx Realty is beginning to attract companies to fill 25,000 square feet of its uber-luxury Penthouse Collection under development on the 32nd-36th floors.
The new façade of 10 Grand Central features its soaring marquee with brass fins and oversized walnut doors, which are attended by uniformed doormen. The lobby has walnut wood, brushed brass, and polished concrete accents reminiscent of a hotel that continues throughout a suite of hospitality-styled amenities on the seventh floor. The lounge boasts oversized artwork and a café 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.
Amazon buying building, Manolo Blahnik taking new flagship space — and more in this week’s office and retail news
March 13, 2020
Amazon’s reported $1.15 billion purchase of the former Lord & Taylor building from WeWork might be the headline deal of the week, but it was far from the only transaction in New York City.
Here’s a look at who grabbed new office and retail space around New York City over the past few days:
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New offices for investment management firm
Rubric Capital Management LP signed a lease for the 16th floor at 10 Grand Central.
The seven-year lease is for 5,800 square feet at 155 E. 44th St. and is the last of the pre-built suites at the property.
Marx Realty is the building’s owner. The company has signed 184,000 square feet of new leases since mid-2018, when it announced the building’s $48 million renovation. Occupancy is up to 95 percent, Marx Realty said in a press release.
Cynthia Wasserberger, Sam Seiler, David Kleiner and Carlee Palmer of JLL are handling the leasing for Marx Realty. Rubric Capital was represented in the lease deal by Cushman & Wakefield. The asking rent was $88 per square foot.
Hedge Fund Moves Down The Block to 10 Grand CentralBy Rebecca Baird-Remba
March 13th, 2020
Hedge fund Rubric Capital is heading to 10 Grand Central in Midtown East, landlord Marx Realty announced this week.
The financial manager inked a seven-year deal for 5,800 square feet on the 16th floor of the 36-story building at East 44th Street and Third Avenue. Asking rent for the space was $88 a square foot.
Rubric Capital is moving from its current space up the block at 767 Third Avenue, on the corner of East 48th Street.
JLL’s Cynthia Wasserberger, Sam Seiler, David Kleiner, and Carlee Palmer represented the landlord in the transaction, while Rubric Capital was represented by Cushman & Wakefield.
“We are thrilled to welcome Rubric Capital to 10 Grand Central,” said Marx CEO Craig Deitelzweig in prepared remarks. “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.”
Marx recently finished revamping the Ely Jacques Kahn-designed property with a hotel-inspired tenant lounge, a new lobby and a new entrance. Several tenants have signed leases in the building over the last year, including ad tech firm ZEFR, data engineering company Crux Informatics and insurer MassMutual.