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
COMMERCIAL OBSERVER
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.
Merchants’ National Properties Names Craig Deitelzweig President and CEO
NEW YORK, Aug. 11, 2017 /PRNewswire/ — Merchants’ National Properties, Inc. (OTC-US: MNPP), a leading developer and manager of retail and commercial properties, announced that Craig Deitelzweig joined the company as its President and Chief Executive Officer on August 10, 2017.
Mr. Deitelzweig brings over 20 years of diverse real estate experience to MNP. He joins MNP from Building and Land Technologies where he served as a Managing Director and head of Asset Management overseeing a diverse portfolio of office, multifamily and hotel assets across the United States. Prior to joining BLT, Mr. Deitelzweig oversaw the office division of Rockrose Development Corp., and previously led the leasing and asset management activities of the Ruben Company’s 4,000,000 square feet of retail and office space in New York, Washington, DC and Boston. Mr. Deitelzweig is also an attorney having worked in the real estate group at Skadden Arps.
MNP’s Chairman, Jamie Better, stated,
“Craig brings a wealth of experience in asset management, leasing, and redevelopment across all classes of real estate and we are excited to have him lead MNP in the next phase of our repositioning and growth.”
About Merchants’ National Properties
Merchants’ National Properties was founded in 1928 and owns interests in 48 properties in 16 states, including the 1,100,000 sf Cross County Shopping Center in Yonkers, NY, 545 Madison Avenue, 201 East 57th Street, NY and 708 Third Avenue, NY, which is also its executive headquarters location.
