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Benenson Capital Renews Offices at Rebranded 10 Grand Central
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BY: REY MASHAYEKHI – JULY 26, 2018 6:15 PM
Real estate investment firm Benenson Capital Partners is staying put at the newly rebranded 10 Grand Central after agreeing to renew its lease on 15,000 square feet at the Midtown East office tower, Commercial Observer has learned.
Benenson signed a 10-year deal to keep its offices on the 27th through 29th floors of the 35-story, roughly 420,000-square-foot building at the northwest corner of East 44th Street and Third Avenue, according to landlord Marx Realty. Family-led Benenson, which owns and operates a commercial real estate portfolio of more than 150 properties across the country, has occupied the building for more than 30 years.
Asking rent in the deal was $78 per square foot, according to sources with knowledge of the deal. Howard Hersch and Clark Finney of JLL handle leasing at 10 Grand Central on behalf of Marx, while Benenson had no outside broker representation.
Marx recently rebranded the 1931 building—ditching its former moniker of 708 Third Avenue—and announced a $45 million capital improvement plan to upgrade the property. The work will permanently close the office tower’s main Third Avenue lobby entrance, renovate and enhance its existing secondary entrance at 155 East 44th Street and create a new 5,000-square-foot tenant lounge on the seventh floor featuring a 36-seat conference facility and a connected, 2,500-square-foot outdoor terrace.
“Current and prospective tenants are extremely enthusiastic about the updates and the terrific location,” Craig Deitelzweig, Marx’s president and CEO, said in a statement. He added that the renovations at 10 Grand Central seek to instill a “boutique aesthetic” and “hospitality-like vibe” at the building, which will feature uniformed doormen attending to the entrance.
In explaining Marx’s decision to rebrand the property, Deitelzweig told The New York Post earlier this month that the company “[didn’t] want to be associated with Third Avenue.”
“A lot of [Third Avenue’s office] buildings are commodity buildings. We don’t want to be like that,” he said, adding, “We want to be a Grand Central building.”
Other tenants at the building include the Association of National Advertisers, horse racing publication Daily Racing Form and the Permanent Mission of Lithuania to the United Nations.
Representatives for JLL did not immediately provide comment.
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, unveiled 10 Grand Central, its hospitality-infused reimagining of the historic Ely Jacque Kahn-designed building in Midtown’s Grand Central submarket. The 35-story building, located at 155 East 44th Street, has been renamed and is undergoing a comprehensive $45 million repositioning focused on impactful design updates, including a relocated and redesigned four-story entry portal, a new lobby reminiscent of members-only hospitality spaces, a well-appointed lounge, a furnished and landscaped outdoor terrace and an oversized conference facility as well as pre-built suites with high-end features and finishes at a level not yet seen in the market. The announcement was made by Craig Deitelzweig, president and CEO of Marx Realty.
“10 Grand Central brings a range of thoughtfully designed spaces that are inspired by the world’s finest hotels and private clubs, applying a modern twist to the building’s original Beaux Arts design aesthetic,” said Deitelzweig. “Warm walnut wood, concrete, brushed brass and velvet are used throughout the building’s full re-design. These elegant enhancements will return this classic, yet modern, tower to its rightful place among the elite Grand Central buildings.”
David Burns, principal of Studios Architecture is behind the dramatic redesign. Located on East 44th Street, just steps away from Grand Central, the office tower was originally designed in 1931 by Ely Jacques Kahn, who also designed Bergdorf Goodman’s department store on Fifth Avenue and collaborated with Ludwig Mies van der Rohe and Philip Johnson on the Seagram Building.
“It’s a terrific location by any measure. By relocating and redesigning the entryway and reimagining the lobby space with modern, yet opulent finishes that speak to a contemporary private club vibe, we’re respecting the history of the building, modernizing its aesthetic, creating spaces that foster collaboration for tenants and their employees, while paying homage to famed architect Ely Jacque Kahn’s original masterpiece.”
The entrance to 10 Grand Central will be located on 44th Street, creating a property that is definitively oriented toward Grand Central Terminal. The new entryway will rise four stories with soaring brushed brass fins, oversized gloss black brickwork and sophisticated walnut wood doors with a glass surround. The building address will be executed in demure brushed brass lettering which, when combined with the grandeur of the entryway, creates a strong strategic presence. Unlike a typical office building, the entry at 10 Grand Central will be attended by a doorman.
The redesigned lobby will feature sleek lines and contemporary concrete details complemented by brushed brass and walnut accents. A jewel box reception desk and soft lighting will round out the aesthetic to create an ambiance that combines classic and contemporary design motifs in the spirit of a full-service hospitality-like design. The aesthetic of the lobby at 10 Grand Central will create a warm sensory experience, added Deitelzweig.
“10 Grand Central will be unlike anything currently available in the midtown office market,” said Deitelzweig. “We did not want this important space to be another typical all-white marble office lobby that could be in any building, in any city. We are embracing the architectural heritage of this significant building by offering truly unique and inviting spaces to our tenants.”
Manhattan, NY According to Craig Deitelzweig, president and CEO of Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily property across the United States, unveiled 10 Grand Central, its hospitality-infused reimagining of the Ely Jacque Kahn-designed building in Midtown’s Grand Central submarket. The 35-story building, located at 155 East 44th St., has been renamed and is undergoing a comprehensive $45 million repositioning focused on design updates, including a relocated and redesigned four-story entry portal, a new lobby reminiscent of members-only hospitality spaces, a lounge, a furnished and landscaped outdoor terrace and an oversized conference facility as well as pre-built suites. The general contractor is Phase 3.
“10 Grand Central brings a range of thoughtfully designed spaces that are inspired by the world’s finest hotels and private clubs, applying a modern twist to the building’s original Beaux Arts design aesthetic,” said Deitelzweig. “Warm walnut wood, concrete, brushed brass and velvet are used throughout the building’s full re-design. These enhancements will return this classic, yet modern, tower to its rightful place among the elite Grand Central buildings.”
David Burns, principal of Studios Architecture is behind the redesign. Located on East 44th St., close to Grand Central, the office tower was originally designed in 1931 by Ely Jacques Kahn, who also designed Bergdorf Goodman’s department store on Fifth Ave. and collaborated with Ludwig Mies van der Rohe and Philip Johnson on the Seagram Building.
The entrance to 10 Grand Central will be located on 44th St., creating a property that is definitively oriented toward Grand Central Terminal. The new entryway will rise four stories with soaring brushed brass fins, oversized gloss black brickwork and sophisticated walnut wood doors with a glass surround. The building address will be executed in demure brushed brass lettering which, when combined with the grandeur of the entryway, creates a strong strategic presence. Unlike a typical office building, the entry at 10 Grand Central will be attended by a doorman.
The redesigned lobby will feature sleek lines and contemporary concrete details complemented by brushed brass and walnut accents. A jewel box reception desk and soft lighting will round out the aesthetic to create an ambiance that combines classic and contemporary design motifs in the spirit of a full-service hospitality-like design.
The aesthetic of the lobby at 10 Grand Central will create a warm sensory experience, added Deitelzweig.
“10 Grand Central will be unlike anything currently available in the midtown office market,” said Deitelzweig. “We did not want this important space to be another typical all-white marble office lobby that could be in any building, in any city. We are embracing the architectural heritage of this significant building by offering truly unique and inviting spaces to our tenants.”
As amenities play an increasingly important role in attracting and retaining office tenants, the confluence of a conference space – including seating for 36 – with a well-appointed and elegant lounge connected to an outdoor terrace represents a high-value proposition for current and prospective tenants. The lounge design will echo the lobby ambiance with brushed brash accents and a concrete floor fashioned in a sophisticated herringbone pattern. A concrete-topped island with bar-style seating will be among many striking focal points in the lounge, which will also feature a café and a variety of seating options to encourage tenants and their guests to mix and mingle.
“An oversized and well-appointed conference space is one of the most sought-after amenities in office design,” said Deitelzweig. “By connecting the conference space with a large outdoor terrace, we’ll offer tenants the opportunity to bring the outdoors in for corporate meetings, special events, client entertaining and day-to-day use.”
The repositioning has already resulted in a significant lease renewal agreement at a blended rate with a tenant who sees the value in having office spaces space that combines form and function for a total package of exclusive business appeal. A JLL team led by Howard Hersch and Clark Finney is handling the leasing effort.
The building’s exterior features timeless Beaux Art appeal with several set-backs that flood each space with natural light. Marx Realty is creating 10 upscale pre-built office suites ranging in size from 2,500 to 8,000 square feet as well as a 22,000-square-foot full-floor space which the firm will build out to tenant specifications. Each new suite will exude an air of sophistication, from the polished concrete floors to the café with its expansive island, multiple seating options, glass backsplashes, brushed brass cabinet and drawer pulls and beverage walls with built-in cappuccino machines. Black steel and glass-framed conference rooms punctuate a contemporary aesthetic in these new office spaces. Many of the new suites will also provide access to a private terrace.
“This architecturally important tower has terrific bones and the infrastructure allows for the implementation of Marx Realty’s vision to create an upscale, exclusive vibe and undoubtedly unlock the value of this location,” said David Burns, principal of Studios Architecture. “At the start of this project, few developers were showing the foresight to bring this kind of boutique hospitality feel to an office property. The grand entrance that transports visitors and tenants to an intimate lobby space is a perfect example of a forward-thinking developer anticipating the design elements that will have the greatest impact for tomorrow’s office users.”
The repositioning of 10 Grand Central represents one element of a hands-on, programmatic approach to asset management that brings added value to the firm’s portfolio nationwide.
“It’s a terrific location by any measure. By relocating and redesigning the entryway and reimagining the lobby space with modern, yet opulent finishes that speak to a contemporary private club vibe, we’re respecting the history of the building, modernizing its aesthetic, creating spaces that foster collaboration for tenants and their employees, while paying homage to famed architect Ely Jacque Kahn’s original masterpiece.”
Marx Realty has unveiled the renamed and soon to be repositioned 10 Grand Central at 155 E. 44th St. It’s a reimagining of a 35-story office tower originally designed by Ely Jacque Kahn in 1931.
“10 Grand Central will be unlike anything currently available in the Midtown office market,” said Craig Deitelzweig, president and CEO of Marx Realty. “We did not want this important space to be another typical all-white marble office lobby that could be in any building, in any city. We are embracing the architectural heritage of this significant building by offering truly unique and inviting spaces to our tenants.”
Already, according to Marx, the repositioning has resulted in a significant lease renewal at a blended rate with a tenant that sees the value in having office space that combines form and function. A JLL team led by Howard Hersch and Clark Finney is handling the leasing effort.
Renderings are out for a new look coming to 155 East 44th Street. The office building’s entrance and lobby will be redesigned to resemble a welcoming environment, along with the lounge, terrace, and modernized pre-war offices. The 35-story office building, designed by Ely Jacque Kahn, will be renamed 10 Grand Central, in recognition of being located within Midtown’s Grand Central Submarket area.
Marx Realty is responsible for the development. This announcement comes while the firm is spending $45 million to refurbish the entire building. Right now, they are focusing on modernizing 10 office suites, ranging in size from 2,500 to 8,000 square feet, as well as a 22,000 square foot full-floor space that will be tailored to the tenants’ conditions.
Lounge at 10 Grand Central, design by Studio Architecture
President and CEO Craig Deitelzweig of Marx Realty spoke about the project, saying, “10 Grand Central brings a range of thoughtfully designed spaces that are inspired by the world’s finest hotels and private clubs, applying a modern twist to the building’s original Beaux Arts design aesthetic.”
David Burns of Studio Architecture is responsible for the design. Walnut panels and soft brass accents will be installed in the entry hall, as well as the conference space, terrace, and lounge.
Lobby hallway at 10 Grand Central, design by Studio Architecture
Burns described his approach to the project as follows:
By relocating and redesigning the entryway and reimagining the lobby space with modern, yet opulent finishes that speak to a contemporary private club vibe, we’re respecting the history of the building, modernizing its aesthetic, creating spaces that foster collaboration for tenants and their employees, while paying homage to famed architect Ely Jacque Kahn’s original masterpiece.
Existing condition of 10 Grand Central, via Google Maps
The site is just four blocks away from Grand Central, serviced by the 4, 5, 6, 7, and S subways, and the Metro-North trains. The building is located within the Grand Central Submarket.
The JLL Team is handling the leasing for the offices.
Marx Realty has owned 708 Third Ave., a 500,000-square-foot office tower at East 44th Street, for about 10 years. But now it’s done with Third Avenue.
How so? As part of a $45 million repositioning of the prewar building, Marx is changing its address from 708 Third — to 10 Grand Central.
And while some other, more modern buildings carry “prestige” monikers — including 2 Grand Central Tower next door on East 44th Street — Marx is going all out to wipe 708 Third’s old address off the map. It’s closing the Third Avenue office lobby entrance, which will be used instead for a yet-to-be-signed fast-casual restaurant.
“We don’t want to be associated with Third Avenue,” Marx CEO and President Craig Deitelzweig declared. “We want to be a Grand Central building. Most of our tenants come to work through Grand Central Terminal every day and so do our visitors.”
He said he’s “100 percent” done with Third Avenue. “A lot of its buildings are commodity buildings,” he said of the postwar structures in the East 40s. “We don’t want to be like that.”
Third Avenue between 40th and 59th streets is a healthy commercial corridor full of major companies, but it lacks the more glamorous identities of boulevards to the west — and of Grand Central.
As a result, say JLL brokers who are marketing 10 Grand Central, average Third Avenue asking rents are much lower than those for comparable buildings in the Grand Central submarket — $64.76 per square foot compared with $91.26 per square foot.
Most of Third Avenue’s office buildings went up in the years after the el came down in 1955. But 708 Third is a prewar outlier designed by Ely Jacques Kahn, who was also the architect of the Bergdorf Goodman.
The 1931 structure features numerous romantic setbacks and Beaux Arts details. Deitelzweig said the plan is to “embrace the heritage.”
An existing, secondary entrance at 155 E. 44th St., which was the historic original entrance, will be redesigned by Studio Architecture’s David Burns as a striking, four-story entry portal framed in brushed brass fins and gloss-black brickwork. Uniformed doormen will greet tenants and visitors entering the intimate new lobby.
The reimagined location emphasizes a “hospitality focus” for tenants. “We’re hoping for a building very different from any other” on Third Avenue, Deitelzweig said. Among the additions geared to 21st-century users will be a new lounge, 36-seat conference facility and landscaped terrace, all on the seventh floor, as well as pre-built suites boasting fine finishes and espresso machines. Materials such as walnut, brushed brass and velvet will reflect the tower’s original motifs.
The project is to be completed by years’ end.
JLL’s team of Howard Hersch and Clark Finney, who won the 708 agency four months ago, wouldn’t comment on old leases, but a source said that asking rents until recently averaged in the $50s.
Marx Realty, a division of Merchants’ National Properties, boasts a 4.3-million-square-foot portfolio that includes 430 Park Ave., 532 Madison Ave. and the land under 545 Madison.
A year after hiring a new leader for an expansion push, Merchants’ National Properties has struck its first New York office deal, agreeing to buy two buildings for about $48 million.
The fully leased properties, at 135 and 161 Bowery on the Lower East Side, are roughly the same size and total of 50,000 square feet. The purchase price works out to $960/sf and a capitalization rate of 5%. Two joint ventures that include Caspi Development of White Plains, N.Y., are the sellers. The off-market trade is being conducted without a broker.
The buildings are a block apart on the east side of the Bowery, between Delancey and Grand Streets. Caspi and RWN Real Estate of New York developed the eight-story building at 135 Bowery in 2017, outfitting it with pre-built suites designed to appeal to “creative” office tenants. The rent roll includes co-working firm Breather. Restaurant Tang Hot Pot occupies ground-floor retail space.
The seven-story building at 161 Bowery is owned by Caspi and Artemis Real Estate of Chevy Chase, Md. It was constructed in 1920 and renovated last year to feature the lost-style space popular with creative firms. Tenants include Ansatz Capital, Brainly and Kik Interactive.
New York-based Merchants’ could look to boost rents as leases roll over. The surrounding neighborhood, once dominated by lighting and kitchen-supply retailers, has been gentrifying, which is pushing up rental rates for the limited office supply.
The company has been looking to expand its holdings in New York, Washington and Atlanta since hiring Craig Deitelzweig last year as chief executive and president. Its first acquisition since the hire was an 11,500-sf retail condo at 124 Hudson Street in Manhattan. It paid $15.2 million in that yearend deal.
Including subsidiary Marx Realty, Merchants’ owns some 4.3 million sf of office, retail and residential space nationwide and has five mixed-use projects under development.
Time Equities Sells Tribeca Retail Condo to Marx Realty
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BY REY MASHAYEKHI OCTOBER 12, 2017 4:36 PM
124 HUDSON STREET IN TRIBECA. PHOTO: COSTAR GROUP
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Francis Greenburger’s Time Equities has sold an 11,500-square-foot retail condominium at 124 Hudson Street in Tribeca to real estate investment firm Marx Realty & Improvement Co. for $15 million, Commercial Observer has learned.
Marx closed earlier this month on the property, located at the base of a nine-story, 26-unit residential condominium building at the corner of Hudson Street and Ericsson Place, according to sources with knowledge of the transaction.
The retail condo is comprised of 7,009 square feet of ground-floor retail space plus another 4,491 square feet of below-grade space, and is currently occupied by a Warburg Realty sales office, the Tribeca Community School and The Little Gym of Tribeca. All three tenants are under long-term leases with no vacancies imminent, sources said, declining to specify the exact length of the leases.
Marx acquired the property as part of a 1031 exchange involving its sale of a mixed-use, residential and commercial property in Louisville, Ky., according to Craig Deitelzweig, the company’s president and chief executive officer.
“We found this corner of Tribeca to be extremely enticing,” Deitelzweig told CO, citing the location’s high traffic and its proximity to Citigroup’s headquarters complex at 388-390 Greenwich Street. “We’re big believers in Tribeca, and New York City in general,” he said, adding that the deal is “part of our continuing effort to grow in New York.”
Itan Rahmani and Jeremy Nazarian of Venture Capital Properties represented Marx in the deal, Nazarian confirmed, while Time Equities’ Scott Klatsky and Hy Schermer represented the seller in-house.
“Despite market sentiment, there has been a continued demand for quality brick-and-mortar retail assets, especially in neighborhoods like Tribeca,” Klatsky, Time Equities’ director of retail leasing and acquisitions, said in a statement. “Savvy investors, like Marx Realty, are taking the long-term view by betting on a neighborhood where boutique retail has traditionally thrived.
Marx is a subsidiary of the publicly traded Merchants’ National Properties, which has a portfolio of 68 properties in 16 states across the country. The firm’s New York assets include 545 Madison Avenue, 708 Third Avenue, 201 East 57th Street and the Cross County Shopping Center in Yonkers.
Marx Realty Signs Lease To Mansour Bringing 201 East 57th Street To 100% Occupancy
Mansour Fine Rugs has inked a 10 year deal with Marx Realty, a division of Merchants’ National Properties, for the entire 4th floor of 201 East 57th Street — bringing the building to full occupancy.
“Mansour is one of the world’s leading purveyors of fine rugs and carpets” according to Marx Realty’s VP of Leasing, Henry Henderson.
Mansour currently has locations in Beverly Hills and London, making their New York City location a strategic bridge for their discerning clientele.
“We were selective about finding the right tenant mix for the building, and Mansour’s high quality nature met our stringent requirements”. Craig Deitelzweig, President and CEO of Marx Realty said, “Bringing 201 E. 57th Street to full occupancy shows the appeal of this vibrant corner of 57th Street and the market’s appreciation of the high caliber aesthetic of this first-class building.”
The building is currently occupied by TD Bank, a multi-floor Design Within Reach showroom and Elite Home. Mansour plans to open in the winter of 2018. Asking rents were $125 per square foot.
Marx was represented in-house by Henry Henderson and Mansour was represented by Joshua Goldman of Cushman & Wakefield.
Marx is a subsidiary of the publicly traded Merchants’ National Properties, which has a portfolio of 68 properties in 16 states across the country. The firm’s New York assets include 545 Madison Avenue, 708 Third Avenue, 201 East 57th Street and the Cross County Shopping Centerin Yonkers.
Nine Leasing Transactions Show Strong Momentum After Building Renovations
CityBizList – September 27, 2017
CBRE’s Keith Caggiano, Arkady Smolyansky and Michael Affronti, representing owner Marx Realty, have arranged nine leases totaling more than 70,000 square feet over the past several months at 708 Third Avenue.
Located steps from Grand Central Station at 44th Street, 708 Third Avenue appeals to a mix of financial services, law firms, non-profits, and creative users, especially those tenants in the 5,000-10,000-square-foot range who can often obtain full floor presence in the building. The 420,000-rsf building boasts excellent exposures with southern, eastern and northern views, as well as western views in the tower floors.
“708 Third is in the midst of a rejuvenation,” said Mr. Smolyansky. “The owners have invested more than $11 million in updating the lobby, creating newly finished terraces, and fully renovating common areas, corridors and bathrooms. Moreover, the location cannot be beat.”
“We are delighted about the volume of leasing activity at the property and the enthusiastic reaction by both tenants and the brokerage community to the recent improvements at 708 Third. We are implementing a pre-built program and additional improvements to be announced that we hope will further enhance the excitement about 708 Third Avenue.” said Craig Deitelzweig, President and CEO of Marx Realty.
Constructed in the 1930’s with an abundance of terraces and natural light, 708 Third Avenue is a 35-story office tower designed by Ely Jacques Kahn, the architect of Bergdorf Goodman and 399 Park Avenue. Kahn was the inspiration for Ayn Rand’s “The Fountainhead.”
Current tenants at 708 Third Avenue include the Association of National Advertisers, Benenson Capital, Macro Holdings, Blackfield and the executive headquarters of building owner Merchants National Properties, Inc. and Marx Realty.
The recently-signed leases include:
Sports Information Group – entire 12th floor, 17,847 RSF
The EastWest Institute – partial 11th floor, 10,015 RSF, 10-year term, represented by Ellen Herman and Harlan Strader of JLL. Relocating from 11 East 26th Street
Weidenbaum & Harari – partial 22nd floor, 5,761 RSF, 10-year term, represented by Douglas Levine from NKF
The Mission of Panama to the UN – entire 26th floor with wraparound terrace and river views, 5,123 RSF, 15-year term, represented by Barry Goodman from NKGF. Moved from 866 UN Plaza
The Fitzpatrick Hotel Group – partial 2nd floor, 4,967 RSF, 10-year term, represented by Stephen Sunderland of Optimal Spaces
Wheelock Street Capital – entire 30th floor with terrace, 4,698 RSF, 10-year term, represented by Arkady Smolyansky of CBRE. Relocating from 500 Fifth Avenue
Itochu Logistics – partial 10th floor, 4,403 RSF, five-year term, represented by Michiko Murakami of Relo Redac
Catalina US Insurance Services – partial 10th floor, 4,261 RSF, five-year term, represented by Sinclair Li, Ryan Alexander and Alex Fincham of CBRE
SoftTech Health – partial 3rd floor, 3,071 RSF, three-year term, represented by William McCollum of Prime Manhattan Realty
Asking rents were between $55-$72 per square foot in the nine transactions.
About Marx Realty & Improvement Co., Inc.
Founded in 1928, the publicly traded Merchants National Properties (“MNP”) owns interests in 68 properties in 16 states, including the Cross County Shopping Center in Yonkers, 545 Madison Avenue and 201 East 57th Street in addition to 708 Third Avenue. Marx Realty is a subsidiary of MNP, and manages and develops properties in NY and across the country.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
