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Manhattan, NY Marx Realty (MNPP) has signed a lease renewal and expansion with Strike Technologies, and its subsidiary Global Trading Systems (GTS), to a five-year, 25,000 s/f lease at 545 Madison Ave. The firm will occupy 14,000 s/f on the 15th and 16th floors and an additional 11,000 s/f on the 17th floor of the 18-story building in Midtown’s Plaza District. The asking rent was $95 per s/f.
“Immediately after taking possession of the building, we met with all the tenants and learned that Strike had a lease out at another building for one of its subsidiaries,” said Craig Deitelzweig, president and CEO of Marx Realty. “They were impressed with our hospitality-infused design plans for 545 Madison combined with our hands-on management approach and, as a result, decided to consolidate and expand in the building. 545 will become the premiere boutique office building in the Plaza District and we are delighted that Strike and GTS believe in our transformative vision for the building.”
Within a year of announcing the repositioning at 10 Grand Central, Marx Realty brought occupancy at that building from 78% to 93% as the first owner to truly embrace the hospitality aesthetic in office buildings. At 545 Madison, the firm plans to invest $20 million in renovations to reimagine the entry and lobby, add amenity spaces and create premiere pre-built office suites. Known for quickly repositioning and reimagining office buildings, Marx will begin work at 545 Madison in Q2 and will dramatically enhance the building’s profile and aesthetic.
The renovations, combined with Marx Realty’s hands-on management style, is designed to retain existing tenants and attract private equity, hedge fund, fashion, and technology firms. The building is occupied by tenants such as media giant Home Shopping Network, investment firm Permanens Capital and top-tier wealth management companies. 545 Madison was renovated in 2009 with major upgrades including a new glass curtain wall, a reconfiguration of the building’s architectural setbacks and a redesigned lobby as well as mechanical, technological, and eco-friendly upgrades.
Positioned at the intersection of capital markets and technology, GTS is an integrated trading and technology firm that combines market expertise developed in the exchange pits with industry-best software and network solutions. GTS’s electronic market making group, which accounts for over 3% of daily cash equities volume in the U.S., utilizes proprietary technology and sophisticated pricing models to offer investors some of the most efficient prices on securities and commodities. Through its fully integrated Strike Technologies division, GTS enables market participants to use its cutting-edge risk management.
Sweetgreen Added to Menu at 10 Grand CentralJanuary 31, 2020
Salad chain Sweetgreen signed a 3,500-square-foot lease for a new location at Marx Realty’s 10 Grand Central. The fast-casual favorite is slated to open in late summer 2020 and will front 44th Street.
Marx Realty was represented in-house by Henry Henderson, VP of leasing. Sweetgreen was represented by Jacqueline Klinger of The Shopping Center Group.
Sweetgreen is Latest to Join Diverse Roster of Dining Options at 10 Grand Central“We are happy to welcome this popular dining option to our already diverse dining menu at 10 Grand Central,” said Craig Deitelzweig, president and CEO of Marx Realty. “Sweetgreen joins foodie favorites like Little Collins, Mulberry & Vine, and Inday, and we are excited to bring another option for dining at 10 Grand Central. Sweetgreen and Little Collins will definitely elevate the dining experience for tenants at 10 Grand Central as well as for those in the Grand Central neighborhood.”
January 31, 2020
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, announced that health-conscious salad chain, Sweetgreen, has signed a 3,500-squre-foot lease for a new location at 10 Grand Central. The fast-casual favorite is slated to open in late summer 2020 and will front 44th Street. Tenants at 10 Grand Central will be able to place individual or catering orders directly through the use of the new Marx Connect app available in all Marx buildings.
Marx Realty was represented in-house by Henry Henderson, vice president of leasing. Sweetgreen was represented by Jacqueline Klinger of The Shopping Center Group.
“We are happy to welcome this popular dining option to our already diverse dining menu at 10 Grand Central,” said Craig Deitelzweig, President and CEO of Marx Realty. “Sweetgreen joins foodie favorites like Little Collins, Mulberry & Vine, and Inday and we are excited to bring another option for dining at 10 Grand Central. Sweetgreen and Little Collins will definitely elevate the dining experience for tenants at 10 Grand Central as well as for those in the Grand Central neighborhood.”
Sweetgreen was founded in 2007 as a destination for simple, seasonal, healthy food and currently operates 20 locations in New York City. The company’s mission focuses on inspiring healthier communities by connecting people to real food. On top of acknowledging their role as a critical link between growers and consumers, Sweetgreen takes especial care of their approach to design. As with all their locations, this new space at 10 Grand Central will preserve and honor the look and feel of the building and will include an open kitchen aesthetic that reflects their commitment to transparency.
The recent completion of a redesigned four-story entry portal, marquee, lobby, lounge, Ivy terrace, and 40-seat conference space was part of the $48 million repositioning of the 35-story Ely Jacques-Kahn designed office tower. In addition, the repositioning included a new façade with a soaring marquee featuring brass fins and oversized walnut doors, which are attended by a uniformed doorman. The walnut wood, brushed brass, and polished concrete accents from the lobby evoke a high-end hotel vibe that continues with a suite of hospitality-styled amenities.
The seventh floor indoor/outdoor café and lounge boasts a confluence of 7,500 square feet of hospitality-styled amenities including a well-appointed lounge with ample seating and a café, a conference facility with seating for 40 and The Ivy Terrace, an inviting outdoor space reminiscent of a 1930s era garden party. The latest addition to the building is a Penthouse Collection with some of the swankiest spaces in New York.
Sweetgreen’s new lease is the latest in a diverse list of new leases at Marx Realty’s 10 Grand Central. The new leases, expansions and extensions include 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 NYPost.com); insurance giant MassMutual, international news agency Agence France-Presse; UK-based sports private equity firm 23 Capital; asset management firm Everside Capital Partners; and, educational technology company Decoded.
The asking rent for the retail space was of $135 per square foot. The building’s office space asking rents range between $82 and $132 per square foot.
Marx Realty takes over leasing and management of 1.15 million s/f Cross County Shopping CenterFebruary 04, 2020 – Owners Developers & Managers
Yonkers, NY Marx Realty, an owner, developer and manager of office, retail and multifamily property across the U.S., will take over leasing and management for the 1.15 million s/f Cross County Shopping Center. The center is jointly owned by Marx Realty and Benenson Capital Management and was one of the first open-air shopping centers to open in the U.S.
“We are excited to combine the proven track record of retail success at Cross County with digitally native and interactive concepts while celebrating the center’s rich heritage,” said Craig Deitelzweig, president and CEO of Marx Realty. “We’ll build on the strategic mix of tenants, from daily needs retailers to dining options, regular events and office users to entice the most attractive tenants while keeping Cross County in the forefront as consumer tastes continue to evolve. Our goal is to elevate this town center experience for residents and visitors to shop, dine and play for years to come.”
As part of the transition, Marx Realty has hired Mark Utreras as senior director of leasing to lead leasing efforts. Utreras joins Marx from NKF, and will bring in up to 10 additional team members to maintain and build upon Cross County’s position among the premier shopping destinations in the nation.
Cross County Shopping Center is located at the intersection of Cross County Parkway and I-87 and is the largest outdoor shopping center in Westchester County. Easily accessible by thousands of shoppers from New York and Connecticut, it has attracted many of the top names in retail and dining and includes the first Shake Shack and Zara in the county as well as a growing Westchester Community College location. The center was once home to the most successful Sears store in the nation. Since the 200,000 s/f, four-story store closed in September 2019, Marx Realty has been in discussions with national, regional, and local operators and retail chains as well as entertainment destination providers to bring added excitement to the center. The stand-alone former Sears building lends itself well to subdivision and could house multiple retail or dining establishments.
This Week’s N.Y. Deal Sheet“We are reimagining the future of Cross County Shopping Center and look forward to further transforming the site and maximizing the mix of shopping, dining and entertainment options,” said Deitelzweig. “Our hands-on owner-manager role, combined with a seasoned site team that understands the customer base, puts us in the unique position to bring added vibrancy to the center. Retailers from across the country are attracted to the superb location and vibrant tenant mix, are expressing interest in moving their storefronts to Cross County. There’s tremendous energy around what Cross County has become and the potential for what it will be in the future.”
January 21, 2020 | Miriam Hall, Bisnow | New York
ASCENT 2020
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Strike Technologies has expanded and renewed its lease at Marx Realty’s 545 Madison Ave., the landlord announced. Strike is a subsidiary of Global Trading Systems; the new deal is for five years. The firm is taking 14K SF on the 15th and 16th floors, and is adding another 11K SF space on the 17th floor of the 18-story building, which Marx took control of after foreclosing on Thor Equities last year. The asking rent in the deal was $95 per SF.
Strike Technologies Renews, Expands with 545 Madison’s New Ownership
January 22, 2020
Within weeks of taking control at 545 Madison Ave., formerly ground-leased by Thor Equities, Marx Realty signed a lease renewal and expansion with financial software developer Strike Technologies, and its electronic market making subsidiary Global Trading Systems. The 25,000-square-foot lease runs for five years.
“Immediately after taking possession of the building, we met with all the tenants and learned that Strike had a lease-out at another building for one of its subsidiaries,” said Craig Deitelzweig, Marx Realty’s president and CEO. “They were impressed with our hospitality-infused design plans for 545 Madison, combined with our hands-on management approach and, as a result, decided to consolidate and expand in the building.
Within a year of announcing the repositioning at 10 Grand Central, Marx Realty brought occupancy there from 78% to 93%. At 545 Madison, the firm plans to invest $20 million in renovations, starting in the second quarter.
Penthouse Office Suites Announced At 10 Grand Central In Midtown East
Following an extensive lobby and façade renovation for 10 Grand Central at 155 East 44th Street in Midtown East, Marx Realty will soon debut a collection of office suites on the top floors of the commercial tower. Located on floors 32 through 36, “The Penthouse Collection” can be configured as 5,000-square-foot single-floor leases or combined into a 10,000-square-foot duplex space or a 15,000-square-foot triplex office.
In 2019, Marx Realty completed an extensive overhaul of the building’s main lobby and lower level façade to provide more immediate access to Grand Central Terminal. The New York-based owner and developer reports over 178,000 square feet of new leases since the announcement of the renovation project and sought to capitalize on that momentum with The Penthouse Collection.
“The next logical step after bringing our one-of-a-kind hospitality aesthetic to 10 Grand Central was to provide the ultimate office experience for high-end users,” said Craig Deitelzweig, president and CEO of Marx Realty. “We’ve already attracted top-tier tenants and well-known groups to the building with our hotel-like ambiance, best-in-class service, and beautifully designed office spaces. The Penthouse Collection raises the bar even higher with ridiculously luxurious finishes and an experience comparable to a stay at the finest penthouse suite in a luxury hotel.”
With hospitality as the central motif, future tenants will have access to private elevators with a uniformed doorman, wood finishes including walnut and herringbone flooring, as well as a private bar and café. Floors 35 and 36 are connected by a grand staircase and open up to a 3,500-square-foot outdoor terrace and a separate 2,400-square-foot solarium positioned on the western edge of the suite. Ceiling heights of 20 feet and floor-to-ceiling windows offer direct views of the Chrysler Building and the surrounding architecture of Midtown East.
The asking rents for the penthouses are $130 per square foot.
The redesign was led by a Marx interior design team and David Burns, principal of Studios Architecture. JLL is handling all leasing on behalf of Marx Realty.
Marx takes over Cross County leasing, working on filling former Sears storePeter Katz | January 16, 2020
Marx Realty, which jointly owns the Cross County Shopping Center in Yonkers with Benenson Capital Management, is taking over leasing and management responsibilities for the 1,150,000-square-foot property. Marx is a division of New York City-based Merchants National Properties, which has a portfolio of 67 properties in 17 states.
Mark Utreras, formerly with Newmark Knight Frank (NKF), has been made Marx’s senior director of leasing and will be responsible for leasing at Cross County. In addition, Marx plans to hire up to 10 additional leasing team members. While at NKF, Utreras served as associate director representing landlords and developers such as RXR Realty, Muss Development and SL Green Realty. He was credited with completing retail lease transactions valued at more than $450 million.
“He will focus solely on Cross County Shopping Center, which is really the first time we’ve had someone dedicated to Cross County,” Craig Deitelzweig, president and CEO of Marx Realty, told the Business Journal. “He’ll get to know every tenant there, every tenant who wants to be there and every tenant that we’re focused on bringing to the center.”
The move to bring leasing and management directly under Marx’s wing coincides with an underlying transition program to build activity at the center and bring the former Sears store back into service following its closing in July 2019. The four-story building contains about 200,000 square feet of space.
“We are actually negotiating with some of the best tenants right now in the entire country for that site and we’re thinking of breaking it up into different floors,” Deitelzweig said. “We have various renderings of what the building could look like, but we do want to customize it due to specific tenant’s desires. There also are different schemes depending on the different sizes of the tenants, but I can tell you that it will be one of the most dynamic-looking areas in the entire center and in any center.” He did not disclose the prospects nor predict when leases might be signed.
Deitelzweig said although the Cross County store was the highest grossing in the U.S. for the Sears chain, the building didn’t seem physically connected to the rest of the shopping center.
“We’re going to connect it by different landscaping methods,” he said. “We will have different seating areas, different floor areas. It will have very much a town center feel to it.”
Deitelzweig said except for the former Sears store, Cross County is about 99% leased. He said they’ve been talking to some of the existing tenants about renewing their leases early in addition to retailers who would become new tenants.
“There are a lot of stores that are in other centers that are looking to leave those centers,” he said. “This center is almost a retail miracle because tenants are just dying to get into this space.”
Cross County was the first open-air shopping center in the U.S., opened in 1954 by developer Sol Atlas. Its history is not lost on Deitelzweig.
“We’re very mindful of our history and how emotionally people are attached to the center and it’s really part of their lives. We’re taking what’s good and making it better. It’s just really a matter of getting the right mix. Keeping those brands that resonate with the customer and bringing in fresh brands as well,” he said.
The Cross County Shopping Center is on 71 acres of land at the junction of the Cross County Parkway and New York State Thruway (Interstate 87). In response to a Business Journal inquiry last fall, Marx estimated that 11 million people visit the Cross County Shopping Center each year and an estimated 224,000 cars pass by the property daily. The center underwent a $250 million upgrade and modernization in 2011.
From foreclosure to fortune: Midtown building scores deal with Wall Street tenantDaniel Geiger | January 16, 2020
As 545 Madison Ave. slid into a financial morass, Global Trading Systems, a major equities market maker on Wall Street, grew tired of the situation.
The firm began to negotiate a deal to relocate to the Empire State Building.
Then in October last year, the Manhattan landlord, Marx Realty, took control of the property after a court action and pledged to invest millions of dollars to upgrade it and hold onto tenants.
In the case of GTS, the pitch worked. The company canceled its plans to move and completed a deal to remain at the 18-story, 140,000 square foot Plaza District office property and expand.
The firm renewed its hold on 14,000 square feet it occupies on the building’s 15th and 16th floors and took an additional 11,000 square feet of space on the 17th floor, space to accommodate growth and recent acquisitions by the firm. Asking rents for the spaces was $95 per square foot.
In December, GTS announced it had purchased an equities trading unit of the bank Barclays that added about 40 new employees.
“This tenant was out the door,” said Craig Deitelzweig, the president and CEO of Marx Realty. “They had a lease on the 77th floor of the Empire State Building that was very advanced. But we spoke to them and pledged how hands-on we’re going to be.”
Landlord Joe Sitt acquired a leasehold of 545 Madison Ave. in 2013 for $53 million, but last year fell into default on his mortgage for the property and on the leasehold interest’s rent, which was due to Marx Realty, which owned the land underneath the property.
Marx Realty took Sitt’s real estate company, Thor Equities, to state court and evicted it from the leasehold, taking over full ownership and management of the property. The firm plans to invest $22 million in building renovations and improvements, replicating a concept it has used to successfully reposition another Midtown building it owns, 10 Grand Central.
There, Marx installed hotel-like amenities, such as a doorman, music, a signature scent, concierge and tenant lounge and conference space.
“In today’s market, tenants are clearly drawn to buildings that have a forward-thinking concept,” said David Falk, the president of Newmark Knight Frank’s New York office, who wasn’t involved in the deal. “When deciding on whether to stay or relocate, the trend we are seeing is that companies seem drawn to those buildings that are being transformed in a noticeable way.”
Deitelzweig said Marx Realty plans to install a library in 545 Madison Ave.’s lobby with seating areas in alcoves that offer privacy. Instead of the white marbles that have become commonplace in many commercial office entrances in Midtown, Marx Realty will use materials such as walnut, velvet and bronze.
“There are so many buildings on the avenue that are simple but cold,” Deitelzweig said. “’We’re bringing in warm elements.”
About 35,000 square feet at the property remains vacant and Deitelzweig said that much of the leases for the remaining space, outside of the new lease with GTS, will expire in the next two years.
“We’re putting in this huge investment because we feel there’s real upside,” Deitelzweig said.
A spokesman for GTS didn’t immediately respond to a request for comment on the deal.
Renovated office towers are about to transform Third AvenueBy Lois Weiss | January 15, 2020 | 11:09pm
Third Avenue should win an award for the most office building makeovers.
Hospitality-minded owners are planning major revamps for several towers between East 42nd and 57th streets, with A-plus amenities targeting modern tenants.
Several office buildings have changed ownership or are in the midst of sales, while others are simply getting a huge influx of capital from long-term owners — with two planning to spend at least $100 million on upgrades.
Marx Realty has already transformed 708 Third into 10 Grand Central and asking rents now run from the $80s to $125 per foot.
While rents will rise in return, tenants get the most modern infrastructure, news windows and extra amenities. The city also gets more tax revenue from the higher incomes.
Recent leases at 711 Third Ave., owned by SL Green, include Strategic Family, the Center on Addiction & Substance Abuse and Goldberg Segalla.
“Third Avenue has a lot of promise,” observes Transwestern’s Lindsay Ornstein.
Early last year, 850 Third was purchased by Jacob Chetrit and his sons for $422 million — and they are buying 220 E. 42nd St. near Third for $815 million through Douglas Harmon of Cushman & Wakefield.
He is also marketing 900 Third Ave. at pricing of nearly $600 million.
“Investors are looking at Third as a value proposition,” says Eric Cagner of Newmark Knight Frank. “It is cheaper than anything in the Plaza District.”
Nuveen, the asset management arm of the Teachers Insurance and Annuity Association (TIAA), is planning makeovers for both 730 and 780 Third.
“We are bullish on the East Side,” says Nadir Settles of Nuveen.
The 665,000-square-foot 730 Third sits between East 45th and 46th streets. Here, Nuveen will spend “north” of $100 million as it replaces all the windows with ”view” glass (which adjusts to light automatically) and adds a dramatic ornamental staircase from the lobby to an amenity-filled second floor.
Nuveen is also creating what its leasing agent, Paul Amrich of CBRE, describes as “a massive rooftop terrace.” It already has a 400-person auditorium and conference center.
Nuveen’s 780 Third Ave., between East 48th and 49th streets, known for its red granite facade and unique crisscross design, will be getting a $40 million influx of capital and a new name: The Gardens.
“Here, you don’t have to think about doing the right thing, you just do it,” says Settles of the company’s investments in amenities, sustainable designs and other features. These will include greeters with electronic check-in clipboards rather than a traditional concierge desk. “It’s all about the tenants of tomorrow and competing for their business. This is the office of the future,” he says.
Architecture firm A+I is overseeing design changes, which include a lounge with food.
Nuveen will also build, own and operate a restaurant and become a neighborhood amenity. “Employees can come for lunch and sit and work,” adds Settles.
Upstairs, a gym is being transformed into a “wellness facility” that will feature yoga classes, plus an on-site doctor’s suite with visiting hours so workers can drop in at the first sign of a sniffle.
Echoing its new name, The Gardens’ trees and plantings will dot an outdoor plaza with new benches and lighting that mimic a residential project.
“Hospitality has merged with office,” says Amrich. “The experience is so unique, as it is blending greenery that will merge into the lobby.”
Also getting in on the renovation competition is the Durst Organization, which developed and owns several Third Avenue office buildings.
Its prime focus now is plowing over $110 million into the entirely vacant 825 Third on the eastern blockfront between East 50th and 51st streets after a 25-year net lease expired.
It will be left vacant while work is underway. This isn’t Durst’s first renovation rodeo, having spent $130 million sprucing up 1155 Sixth Ave. and $150 million on 151 W. 42nd St. — formerly 4 Times Square.
“825 Third will be our flagship building and have our flagship amenities,” says Tom Bow, executive vice president at Durst. Gensler is designing, targeting a LEED Gold designation, while Design Republic will be tasked with the amenities.
Its marble lobby will be updated with wood and metal details. New elevators and bathrooms are also in the works.
While amenities will be added to the lobby, a new staircase could lead to a second floor with more, depending on the future tenant of the podium, which goes to the 11th floor. The 12th-floor has a huge terrace. “View” glass will be used on the 12th through 40th floors.
A private lobby could also be created, says Ashley Aaron, senior managing director at Durst, who is working on the leasing and redevelopment project.
Podium asking rents are $78 per foot, while tower floors start at $84 per foot and bump to nearly $100 at the top, where a double-height floor could be made.
Outside will be all new storefronts and the surrounding plaza will be renovated.
With sustainability and “green” construction in the Dursts’ DNA, nearly everything is being recycled.
Notes Michael Cohen of Colliers, “A location like Third Avenue could become the Midtown South of the 21st century.”