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February 27, 2025
Marx Realty and Baccarat have unveiled their collaboration at 545 Madison Ave. The building, colloquially known as the Baccarat Building, is located between 54th and 55th Streets in Midtown Manhattan’s Plaza District. The completion of its 10,000-square-foot penthouse headquarters and mezzanine, complemented with Baccarat art throughout, marks Baccarat’s expansion into a full suite of luxury lifestyle offerings beyond the home, according to Marx Realty.
“Marx and Baccarat’s collaboration represents an evolution of our hospitality-infused aesthetic and approach,” said Craig Deitelzweig, president and CEO of Marx Realty. “With Baccarat’s essence throughout 545 Madison, we’ve seamlessly blended the lines between elegant workspaces and luxury-branded hospitality. The combination of these two iconic brands has created a one-of-a-kind experience for our tenants and their guests.”
The new office space is located a few blocks from Baccarat’s boutique retail location at 635 Madison Ave. and proximate to Baccarat Hotel New York. Other tenants at 545 Madison include GTS, Millenium Partners, Snow Phipps, Kohlberg, Vialto Partners, and Orangewood Capital.
Manhattan buildings sit at corner of prestige and high rent after address changesFebruary 25, 2025
Marx Realty CEO Craig Deitelzweig said rent has doubled at 10 Grand Central since the landlord changed the address from 708 Third Ave.
On a recent morning, a pedestrian waited outside the subway entrance at East 42nd Street and Lexington Avenue to ask for directions to 10 Grand Central.
“Sorry, can’t help you,” said a gentleman named Mark, who works nearby in financial services. “I bet it’s near the train station.”
Indeed, 10 Grand Central is one block east of Grand Central Terminal. But even though the 36-story tower has stood there since 1931, its location isn’t better known perhaps because its address for decades was 708 Third Ave. The change came in 2018 after owner Marx Realty renovated the 450,000-square-foot building and moved the entrance around the corner to East 44th Street.
This new name produced a shift in fortunes on par with what happened to Stefani Germanotta when she became Lady Gaga. Freed from its association with Third Avenue, a corridor riddled with depressingly vacant post-war office buildings, 10 Grand Central’s average rent has jumped to $92 a square foot from $44 last year. Total revenue has doubled to $40 million a year.
“If we were 708 Third Ave., we wouldn’t be renting at these prices,” said Marx Realty CEO Craig Deitelzweig.
The building at 10 Grand Central is just the latest in Manhattan to change its fortunes at least in part by changing its address.
Ever since 1250 Broadway was renamed NoMad Tower in 2017, for example, rents have risen by 25%, said Craig Panzirer, director of leasing at owner Global Holdings Management. The name change helped draw attention to the $45 million spent by the landlord to upgrade the 1960s-era glass tower at the corner of West 32nd Street.
“We’re getting rents you don’t normally see in this part of town,” Panzirer said.
Opting for vanity
Changing a building’s address typically requires approval from the borough president. It costs $11,000 to secure an OK from the Manhattan borough president’s office for an address that deviates from “normal numbering conventions.”
“A vanity address should make the building easier to find or at least no less difficult to find,” reads a memo from the office’s topographical bureau. “The request for a vanity address should be based on more than the desire to lend prestige to an otherwise ordinary building.”
Of course, prestige – and higher rents – is exactly what most building owners are looking for. In Midtown, many have chosen to bask in the refracted glory of Bryant Park. Bank of America kicked off the trend in 2010, when its new tower rose at the northwest corner of West 42nd Street and Sixth Avenue and took the address 1 Bryant Park. Across the street, 1100 Sixth Ave. rechristened itself 2 Bryant Park, 1095 Sixth Ave. became 3 Bryant Park, 1071 Sixth Ave. turned into 4 Bryant Park and 1065 Sixth Ave. became 5 Bryant Park, according to mortgage records filed with the city.
A few blocks to the east, three years ago 335 Madison Ave. renamed itself 22 Vanderbilt Ave., a nod to the shiny supertall tower that rose across the street at 1 Vanderbilt Ave.
Sometimes changes have different intentions, such as when the Durst Organization changed 4 Times Square about five years ago into the more traditional-sounding 151 W. 42nd St.
“They wanted to distance themselves from the craziness in Times Square,” said one broker.
In a statement, Durst Organization explained the move by noting the primary physical entrance to the office building is on 42nd Street facing Bryant Park rather than in Times Square. Meanwhile, Durst kept the 4 Times Square branding for the building’s retail spaces.
Over on West 34th Street, the towers at 1 and 2 Penn Plaza are now Penn 1 and Penn 2 after Vornado Realty Trust spent more than $1 billion modernizing these 1960s-era buildings. Penn 1, which was completed first, is commanding 30% more rent than before the 2019 rebrand, or about $100 per square foot.
Vornado wouldn’t comment on the address change. Dan Shannon, an architect who worked on the project, said “plaza” had an old-fashioned connotation that doesn’t fit with the Penn area’s refreshed towers and public spaces.
“A new name conveys new ambition,” said Shannon, managing director at MdeAS.
Or, as Piper Sandler real estate analyst Alexander Goldfarb put it, “When you spend hundreds of millions redeveloping a building, you want a new name.”
But you can’t always get what you want. The owner of 45 E. 53rd St. wanted to change to a Park Avenue address, but city officials said no. Although buildings located on the corner of an avenue and a side street can “pull” an avenue address to a side-street entrance, according to the Manhattan borough president’s office, 45 E. 53rd doesn’t face Park Avenue. The city’s aim is to prevent cases like that of 1325 Sixth Ave., a tower developed in 1989 that’s actually on West 53rd Street and closer to Seventh Avenue than Sixth.
New name mojo
Sometimes the need for change is obvious, such as when 666 Fifth Ave. changed its address four years ago to 660 Fifth. The New York Post described the old address as “diabolical,” and Brookfield wanted a fresh start after acquiring the tower from the Kushner family. Around the same time, 666 Third Ave. changed to 6 Grand Central. Owner Tishman-Speyer declined to comment.
The first building to see the potential of Grand Central as a business address was 140 E. 45th St., developed in the 1980s by Harry Macklowe, who was referring to it as 2 Grand Central Tower in a 1997 mortgage document filed with the city. In 2009, 60 E. 42nd St. became 1 Grand Central Place, a move that its owner, the Malkin family, said “confirms the building’s reputation as the premier prewar trophy property within the Grand Central district.” The 1.2 million-square-foot tower is 92% leased, up from 79% a decade ago.
The mojo carried over to 10 Grand Central, whose leased rate has climbed to 93% since shedding its Third Avenue address, a high figure for a building its age. Some tenants seem to like the Art Deco touches of the building designed by architect Ely Jacques Kahn; Ayn Rand worked in his office for six months while writing The Fountainhead. Other tenants appreciate 10 Grand Central’s remodeled lobby scented with Baccarat perfume, ample outdoor terrace spaces upstairs and open floor plans with hidden columns.
“We chiseled beams from the ceiling to get an extra half-inch of space,” Deitelzweig said. “Little things like that add up.”
Marx Realty signs 22,000 s/f in leases at 10 Grand Central
Manhattan, NY Marx Realty shared that telemedicine giant Teladoc Health has expanded and extended its lease at 10 Grand Central. The firm will more than double its footprint at the repositioned office tower taking a total of 15,000 s/f in a 10-year deal as it relocates its corporate headquarters from Purchase. Exiger, a cyber security and supply chain technology firm, will take 7,000 s/f in a new, seven-year lease at 10 Grand Central.
Teladoc was represented by Sean Lynch of JLL while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann, and Thomas Schwartz are leading a team handling leasing for Marx Realty. Asking rents at 10 Grand Central range from $78 to $130 per s/f
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” said Craig Deitelzweig, CEO of Marx Realty. “10 Grand Central provides much more than just work spaces. Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. The incredible leasing velocity at 10 Grand Central is proof positive that we created a new benchmark for workplace design when we pioneered the hospitality-infused aesthetic at 10 Grand Central in 2018 and we’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
Marx Realty created an all-encompassing sensory experience at 10 Grand Central, starting with its bold façade featuring marquee brass fins and oversized walnut doors, attended by a uniformed doorman. Inside, the lobby showcases rich walnut wood and brushed brass accents infused with the firm’s signature scent. The 7,500 s/f indoor/outdoor lounge and club floor includes a café, a 40-seat conference space, and The Ivy Terrace – an outdoor area inspired by the elegance of a 1930s garden party. Adding to the building’s unique blend of hospitality and office space, an electric Porsche Taycan, dubbed the MarxMobile, serves as the house car.
The strong leasing momentum and incredible demand for the members only club-like amenities at 10 Grand Central have led the creation of “The Meeting Galleries,” a recently delivered suite of spaces unlike anything currently available in the market. The Meeting Galleries will encompass 11,000 s/f of well-appointed amenity space, including The Grand Gallery, capable of hosting up to 200 people in a town hall or classroom configuration; The Screening Gallery with stadium seating; The Bar Car featuring a fireplace, a pre-function area, and a lounge with a variety of seating areas and private work rooms; and The Podcast Gallery, a tech-equipped soundproof booth with state of the art production equipment.
The Galleries’ aesthetic boasts a distinctive homage to the designs of nearby Grand Central Terminal, dramatic new windows in the style of luxury train car windows, and a luxury train liner-style vibe complemented by old-school antiqued mirrored ceilings and period-specific artwork that echoes the grandeur of the Art Deco era while capturing the rheritage of the building.
“This evolution in our amenity offering at 10 Grand central is a resounding success,” said Deitelzweig. “New and existing tenants are enamored by the beauty and functionality of The Galleries as the perfect complement to the sensory experience we created at 10 Grand Central.”
Marx Realty has secured over 100,000 s/f of office and ground-floor retail space at 10 Grand Central in the last year. Tenants also include Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions; insurance giant MassMutual, and international news agency Agence France-Presse. Additional notable tenants include law firm Lewis Baach and bank holding company Merchants Bancorp. Sweetgreen, Maman and Cava occupy street-level retail spaces at 10 Grand Central offering tenants convenient access to fast-casual dining options.
By: Paul Bubny
Marx Realty announced telemedicine giant Teladoc Health has expanded and extended its lease at 10 Grand Central. The firm will more than double its footprint at the repositioned office tower, taking a total of 15,000 square feet in a 10-year deal as it relocates its corporate headquarters from Purchase, NY. Exiger, a cyber security and supply chain technology firm, will take 7,000 square feet in a new, seven-year lease at 10 Grand Central.
Teladoc was represented by Sean Lynch of JLL while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann, and Thomas Schwartz are leading a team handling leasing for Marx Realty.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” said Craig Deitelzweig, CEO of Marx Realty.
Marx Realty Signs 17,000 SF of Tech Firm Leases at 10 Grand Central
Marx Realty announced that telemedicine giant Teladoc Health has expanded and extended its lease at 10 Grand Central. The firm will more than double its footprint at the repositioned office tower for a total of 15,000 square feet in a 10-year deal as it relocates its corporate headquarters from Purchase, NY. Exiger, a cybersecurity and supply chain technology firm, will take 9,000 square feet in a new, seven-year lease at 10 Grand Central.
Teladoc was represented by Sean Lynch of JLL while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty. Asking rents at 10 Grand Central range from $78 to $130 per square foot.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” said Craig Deitelzweig, CEO of Marx Realty. “10 Grand Central provides much more than just workspaces. Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. The incredible leasing velocity at 10 Grand Central is proof positive that we created a new benchmark for workplace design when we pioneered the hospitality-infused aesthetic at 10 Grand Central in 2018 and we’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
Marx Realty created an all-encompassing sensory experience at 10 Grand Central, starting with its bold façade featuring marquee brass fins and oversized walnut doors, attended by a uniformed doorman. Inside, the lobby showcases rich walnut wood and brushed brass accents infused with the firm’s signature scent. The 7,500-square-foot indoor/outdoor lounge and club floor includes a café, a 40-seat conference space and The Ivy Terrace – an outdoor area inspired by the elegance of a 1930s garden party. An electric Porsche Taycan, dubbed the MarxMobile, serves as the house car.
The building also offers “The Meeting Galleries,” a recently delivered 11,000 square feet of amenity space, including The Grand Gallery, capable of hosting up to 200 people in a town hall or classroom configuration; The Screening Gallery with stadium seating; The Bar Car featuring a fireplace, a pre-function area, and a lounge with a variety of seating areas and private work rooms and The Podcast Gallery, a tech-equipped soundproof booth with state of the art production equipment.
“This evolution in our amenity offering at 10 Grand central is a resounding success,” said Deitelzweig. “New and existing tenants are enamored by the beauty and functionality of The Galleries as the perfect complement to the sensory experience we created at 10 Grand Central.”
Teladoc to relocate headquarters from New York suburb to ManhattanBy Andria Cheng
Teladoc Health is moving its headquarters to 10 Grand Central near Manhattan’s Grand Central Terminal. (Marx Realty)
Telemedicine provider Teladoc Health is moving its headquarters from the New York suburb of Purchase to Manhattan.
The telehealth firm is more than doubling its footprint to 15,000 square feet in a 10-year deal at Manhattan’s 10 Grand Central at 155 E. 44th St. as it plans to move its corporate headquarters from Purchase, New York, to the city, landlord Marx Realty said Wednesday in a statement.
The lease comes as 10 Grand Central, steps from Grand Central Terminal transit hub, has been renovated to feature amenities such as a 7,500-square-foot indoor and outdoor lounge and club floor. The building, seeking to offer tenants hotel-like amenities, also features an electric Porsche Taycan that serves as the house car. Marx Realty said it recently also created “The Meeting Galleries,” a suite of spaces that feature a town hall space that can host up to 200 people; a screening gallery with stadium seating; and a podcast studio.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants,” said Craig Deitelzweig, CEO of Marx Realty. “Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. … We’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
In addition to Teladoc, Exiger, a cybersecurity and supply chain technology firm, also is taking 7,000 square feet in a new, seven-year lease at 10 Grand Central, Marx said, adding that Exiger is relocating from 230 Park Ave.
Teladoc was represented by Sean Lynch of JLL, while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty.
Asking rents at 10 Grand Central range from $78 to $130 per square foot.
Marx Realty has inked over 100,000 square feet of office and ground- floor retail space at the building in the last year, with its high-profile tenants also including Dwayne “The Rock” Johnson’s production company, Seven Bucks Productions; insurance giant MassMutual; and international news agency Agence France-Presse. Sweetgreen, Maman and Cava occupy street-level retail spaces at the property.
For the record
Teladoc was represented by Sean Lynch of JLL, while Exiger was represented by Mitchell Konsker and Simon Landsmann of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz are leading a team handling leasing for Marx Realty.
Teladoc CEO Chuck Divita and 10 Grand Central.PHOTOS: Courtesy Teladoc; Courtesy Marx Realty
Attention, Grand Central, the doctor will see you now (virtually).
Teladoc Health, an online health care resource, renewed its offices at Marx Realty’s 10 Grand Central and doubled its footprint to 15,000 square feet in a 10-year deal, according to the landlord.
The company is in the process of relocating its corporate headquarters to New York City from its longtime headquarters in Purchase, N.Y.
“The Teladoc story is compelling in that the firm has chosen to abandon its suburban New York headquarters in favor of the spectacular office experience and one-seat commute we offer tenants at 10 Grand Central,” Craig Deitelzweig, CEO of Marx Realty, said in a statement.
Teladoc moved into 10 Grand Central in 2023, when it originally took 7,000 square feet, as Commercial Observer previously reported.
JLL (JLL)’s Sean Lynch represented Teladoc in the deal.
Additionally, Marx also signed a seven-year lease with cyber security and supply chain technology firm Exiger at 10 Grand Central. The firm will occupy 7,000 square feet at the Midtown East office tower, according to Marx.
The cyber security company — which has offices in Bucharest, London and Singapore — will be relocating its New York City outpost from 230 Park Avenue, Marx said.
Exiger was represented by Mitchell Konsker and Simon Landmann of JLL.
Konsker, Landmann, Carlee Palmer, and Thomas Schwartz from JLL handled both deals for Marx Reality.
JLL did not immediately respond to a request for comment.
Asking rents at 10 Grand Central range from $78 to $130 per square foot, according to Marx Realty. The firm has been redeveloping the 35-story office tower in hope of creating an office building that has a vibe more like a luxury hotel.
“10 Grand Central provides much more than just workspaces,” Deitelzweig said. “Tenants view their office locations as recruiting tools, collaboration hubs and extensions of their own brands. The incredible leasing velocity at 10 Grand Central is proof positive that we created a new benchmark for workplace design when we pioneered the hospitality-infused aesthetic at 10 Grand Central in 2018, and we’re seeing similar success across our portfolio as we have effectively blurred the line between office and hotel.”
Other tenants of 10 Grand Central include production company Seven Bucks Productions (which is co-owned by Dwayne “The Rock” Johnson), insurance company Mass Mutual and bank holding company Merchants Bancorp.
Companies are once again battling for Manhattan office space and prices are surgingBy Lois Weiss
The sexy view-happy patio at the Lever House.Brian Zak/NY Post
Trophy offices are so hot, brokers say tenants better put a ring on it before someone else does.
Adam Henick of Current Real Estate Advisors had financial clients that were eyeing the newly built boutique office building at 360 Bowery near Soho that could have housed numerous family offices and well-funded tech funds. Then, he recalled, “In one fell swoop all that supply was taken off the market because Chobani leased the entire building.”
Even the city’s core Plaza District that includes Fifth, Madison and Park avenues north of Grand Central will soon have “No Vacancy” signs up.
Newly built 360 Bowery.Handout
Leading the city’s stats, leasing in the Plaza District hit 3.26 million square feet in the last quarter of 2024. This includes a Citadel lease for 504,000 square feet at Brookfield’s 660 Fifth Ave. that paves the way for its current offices at 350 Park and the adjacent 40 E. 52 St. to be demolished and rebuilt with 1.8 million square feet touching 1,600 feet high — but it won’t be ready until … oh, maybe 2032.
Since there is little new development rolling out and another 100 million square feet in “zombie” properties that can’t sign deals due to fiscal or other issues, the unspoken for portion of the remaining 360 million feet is getting all the action.
JLL reported overall leasing hit 30.2 million square feet and was the most since 2018 with a vacancy of 18%. A record 28 deals were signed above $200 per foot with 212 above $100 per foot.
Leases for two full floors at Stefan Soloviev’s 9 W. 57th St. with Tikehau Capital and Platinum Equity were among those signed at over $200 a foot.
“There are fewer opportunities and fewer buildings that can meet the market,” said Mark Weiss of Cushman & Wakefield. “We went from weak market to a tight market within a year. Premium buildings and premium locations have great pricing power.”
Trophy offices in the Plaza District are being gobbled up by major players. Just look at 660 Fifth Ave., where finance giant Citadel signed a massive half-million-square-foot deal.Brookfield Properties
The most recent deals at Lever House at 390 Park Ave. were all signed above $200 per foot, well outpacing the average trophy rent of $150 per foot, according to CBRE. Remaining floors now have asking rents ranging from $240 to $280 per foot. CBRE, whose main offices are at 200 Park, even nailed down six floors at Lever House for its own “global financial headquarters” with two as flex space for top executives, who also get the use of its upscale club.
Market rents for investors are being underwritten 20% to 30% higher since the pandemic, especially around Park Avenue and for towers with access to Grand Central Terminal. The trophy One Vanderbilt, for instance, is getting nearly $300 per foot — when available.
“This is obviously a changing market, the type of workplaces [people] want to be in, the neighborhoods they want to be in, the type of buildings they want to be in,” said Scott Rechler of RXR. “There’s a flight to quality.”
Lever House at 390 Park Ave. is seeing deals over $200 a foot. Downtown, 60 Wall St. is attracting savvy tenants looking for value.Lucas Blair Simpson
Rechler’s Commodore Tower at 175 Park Ave. next to Grand Central Terminal already has a 453,000-square-foot Park Hyatt in hand but the 2.8 million-square-foot monster in waiting by RXR, TF Cornerstone and Michael Dell’s firm, DFO Management, needs a boost from a big office anchor to fill the remaining 2.1 million square feet.
The Plaza District is the tightest submarket and because capital markets have suffocated construction, Henick said that dynamic won’t change very soon.
Other projects that need anchor tenants before getting construction financing include BXP’s 347 Madison Ave., which has asking rents from $175 a foot in the base to over $300 at the top.
“They are not getting price resistance,” said one broker who asked for anonymity. But brokers are hoping BXP doesn’t wait for an anchor because, they say: ”Build it and the tenants will come.”
“The story of 2024 was how well core Midtown has done but as companies [seeking space] realize what they want doesn’t exist, the demand will broaden to other submarkets.”
– Howard Fiddle of CBRE
Floors at Alchemy-ABR’s entirely new 125 W. 57th St., which all have views of Central Park, are expected to be gobbled up by those needing floorplates of around 11,000 square feet.
SL Green’s 245 Park Ave. is undergoing a redo and is expected to get high rents, as well.
Between West 42nd and West 43rd streets, the new boutique 520 Fifth Ave. includes access to its private club. It will be open later this year and negotiating several deals.
“The building is on fire and a complement to Nicky Rabina and how great a developer he is,” said investment sales broker Doug Middleton of CBRE.
Next door at 522 Fifth Ave., owner Aby Rosen said he has worked out finances at the vacant building and is targeting companies that want a corporate headquarters.
Gary Barnett’s tower at 570 Fifth Ave., with an IKEA in its base, won’t be available for at least three years.
Still, tenants that first start looking at that time will have difficulty finding solutions, Henick explained.
The new ground floor space at 570 Fifth Ave. will be ready for Ikea to move in by 2028.INGKA
Further out from Grand Central Terminal and Hudson Yards, the demand is weaker and rents are lower — now averaging around $77 per foot overall.
“The story of 2024 was how well core Midtown has done but as companies [seeking space] realize what they want doesn’t exist, the demand will broaden to other submarkets,” predicted Howard Fiddle of CBRE.
Since not every company can afford $200 a foot, Fiddle believes tenants will also make fiscally prudent leaps to downtown, where Colliers reports an average asking rent of $57.03 per foot.
Already, Colliers reports downtown’s total yearly absorption of 2.27 million square feet was the most since 2014.
Downtown, 60 Wall St. is attracting savvy tenants looking for value.Lois Weiss
Fiddle is part of the leasing team for 60 Wall St., where asking rents start in the $70s per foot. Owner Paramount Group has a $250 million renovation underway for the entirely vacant 1.6 million-square-foot former headquarters building.
Just north of Tribeca in Hudson Square, Disney is settling into its new digs, and brokers believe it will boost the area’s restaurants and retailers.
It may also kickstart Taconic Partners and Nuveen’s One Grand, a 28-story, 478,000-square-foot boutique office building designed by SHoP that will include a new public school on land at 76 Varick St. owned by Trinity Church.
Nearby, Hudson Square Properties, a joint venture, redeveloped 345 Hudson St. by joining it to the entirely new 555 Greenwich St. This now 1.7 million-square-foot building has new amenities, a town hall and rooftop terraces.
Din Tai Fung occupies 26,000 square feet of the underground level at 1633 Broadway.Jason Varney
In Midtown, Paramount Group’s 1633 Broadway has floorplates of 40,000 to 50,000 square feet and rents from the $60s to $80s per foot. There’s an Equinox, plus its new restaurant, Din Thai Fung, has a cult following and a new lobby renovation is forthcoming.
Unique hospitality-like amenities are creating bidding wars for the offices at 10 Grand Central.
“We have four groups vying for the same space,” said Craig Deitelzweigof Marx Realty. “We built out two floors of pre-builts and they are all gone.”
Here, Marx has 11,000 square feet of amenities that include an elegant 200-seat town hall, which “everyone wants for events and product launches” and had city approvals in time for his holiday party, featuring Rockettes and sushi. A podcast room and movie spot are in adjoining areas while a second floor of amenities has a boardroom and cozy, see-through igloos on its terrace.
“Tenants want amazing spaces and want to enjoy going to work and if you don’t make it special and distinctive it won’t lease. But if you do, you will get high rent,” said Deitelzweig.
Three floors of around 12,000 square feet will be available this year at Marx’s highly amenitized 545 Madison Ave. that is co-branded with Baccarat. Asking rents range from $120 to $130 per foot — and he expects to get that pricing.
When clients tour and can compare new construction with even glass towers built 50 or 60 years ago, they can see vast differences. “You can add amenities and you can refresh the lobby, but you are not removing columns or making the windows larger,” Henick said. “That is one of the issues that will plague the market.”
NYC building investors are getting prices last seen 20 years ago as values bottom outBy Lois Weiss
Deutsche Bank picked up the massive Essex Crossing development along Delancey St. for a mere $236.9 million. It will likely be resold.MOSO
Calling anyone with cash: There’s never going to be a better time to buy a piece of NYC.
“Values have come down a lot and stabilized in 2024 — and now present an opportunity,” said Ariel Property Advisors’ Shimon Shkury of the market for both office and multi-family buildings.
In fact, buyers are now getting pricing last seen 20 to 25 years ago. Office condos that were selling for $800 to $1,000 per foot in 2019 are now closer to $400 a foot. “Owners are negotiating because they want to stay alive,” said attorney Jay Neveloff, who heads real estate at Kramer Levin.
These values are positively retro: Savanna paid just $255 million for the 185,000-square-foot office building at 799 Broadway. It cost $300 million to develop and is 71% occupied.
For instance, Michael Cohen’s Williams Equities paid $147.5 million for 470 Park Ave. South or $490 per foot; it sold in 2018 for $245 million. Savanna paid $255 million, or $1,380 per foot, to Columbia Property Trust and Cannon Hill Capital Partners in the lender-advised sale of 799 Broadway. That 2022-built, 185,000-square-foot office building cost $300 million to develop and is 71% occupied at high rents.
Zar Property New York bought two smaller deals for even less: 119 W. 57th St. on Billionaires’ Row for $27 million, or $170 per foot, and 30 W. 61st St. for $15.2 million, or $97 per foot.
“The people buying for sub-$300 per foot or sub-$200 per foot are taking a chance,” said Craig Waggner of Cushman & Wakefield. “The city is perceived as a safe haven and it’s hard to go wrong.”
Michael Cohen’s Williams Equities paid $147.5 million for 470 Park Ave.Russ Colchamiro
In another steep valuation reset, Robert Moser’s Prime Group Holdings and Empire Capital will pay $50 million for the Ironworks project at 511-541 W. 25th St. in Chelsea. The sellers paid $148 million for it in 2019. The buyers will turn a portion into storage facilities.
Many of these bargain-basement prices come courtesy of owners and lenders who want to ditch properties dinged by factors including high interest rates, ground rent resets and regulations. Lenders are also initiating deals to sell both performing and underperforming notes.
“There is a lot of enthusiasm that we are through the worst, but also caution about the trajectory of the healing,” added Andrew Scandalios of JLL. “It’s tilted positive for equities and the buy-side investors are bullish, but they are all cautious and selective about the quality of what they are buying.”
“The people buying for sub-$300 per foot or sub-$200 per foot are taking a chance … the city is perceived as a safe haven and it’s hard to go wrong.”
Craig Waggner of Cushman & Wakefield
High-net-worth individuals, family offices and international groups are also kicking bricks and buoying the market.
“The international community will be more focused on higher quality and we are seeing some Asian investors that want to chase distressed opportunities,” said Doug Middleton of CBRE.
For instance, SL Green sold an 11% stake in the trophy One Vanderbilt to the Japanese family-owned Mori Building Company, revaluing the tower at $4.7 billion or around $3,000 per foot.
In this rising market, owners are more willing to bring in new equity, even if it leaves them with a smaller share, Neveloff explained. To capitalize on that interest from wealthy foreign investors, Neveloff’s firm is merging with an international law firm with 23 offices around the world and after May 1, will be known as HSF Kramer in the US.
“The market is bouncing off the bottom and has created a foundation for the recovery,” noted Douglas Harmon of Newmark. “There will be new opportunities at significantly reduced prices.”
Meanwhile, SL Green bought the offices at 500 Park Ave. from Morgan Stanley for $130 million.Brian Zak/NY Post
He and Adam Spies marketed the office portion of Morgan Stanley’s 500 Park Ave., which is being sold to SL Green for $130 million; and 2 Park Ave. being purchased by Haddad Brands for $360 million — that seller paid $519 million in 2007.
The newly developed offices and retail at Essex Crossing at 145 and 155 Delancey St. in the base of residential towers were taken over by lender Deutsche Bank for its loan of $236.9 million and will likely be resold.
But the poster child for the steep reset in values is the former Sports Illustrated Building at 135 W. 50th St., which was purchased in early 2024 for $8.5 million; it once traded for $332 million.
Now, after a ground lease rent reset, the buyer, Texas-based Thakkar Developers, is targeting $150 million in renovations.
With deals this good floating around, Marx Realty CEO Craig Deitelzweig might as well speak for the entire industry when he told The Post, “We want to buy more.”
Craig Deitelzweig — President and CEO at Marx Realty & Improvement Co.
Are you going to buy in `25? If so, what asset class?
Definitely. We will be buying office buildings in 2025, as we believe we are experiencing a once-in-a-generation-type of buying opportunity. Of course, we will be selective in our purchases with an emphasis on location and the bones of the asset.
Is there a single “good” sign you see in a distressed property that makes you want to buy it?
We often think about how the asset could be transformed. We love to see assets that were performing well at some point and have just lost their edge because the property is not properly catering to the market. We see this often as some landlords have not evolved, and have assets that seem stuck in time or have undergone mediocre and uninspired repositionings.
What real estate or tax policy would you like to see from a Trump administration?
It would be great to see incentives encouraging owners to invest in transforming the nation’s older office buildings into world-class assets. We have long believed that, much like some of the best hotel assets, heritage office buildings with modern upgrades tend to attract tenants seeking spaces with a strong sense of history, authenticity and soul. There are also strong environmental reasons for transforming older office buildings into state-of-the-art office spaces, and it would be helpful if there were more tax incentives to accelerate this transformation.
If you could stack the new administration with people you know and do business with, who would you choose?
Max Gross and Cathy Cunningham. [“We will not accept if nominated, and will not serve if elected.” — M.G. and C.C.]
Let’s talk about office. Is the worst over?
Yes. But not for everyone. Marx Realty assets are seeing incredible leasing velocity, record rental rates and robust demand from all different sectors of the economy, particularly from private equity, fintech, tech and fashion. This speaks well for the future of New York office. Lastly, physical occupancy in our buildings is better than pre-pandemic, which also signals this is a great buying opportunity.
On Thanksgiving Day, we delivered the Meeting Galleries, another 11,000 square feet of amenities to complement the building’s current amenity offering. We are seeing such strong demand for our spaces in the building that we have been able to raise rents two times this year — and that’s before delivering our new Meeting Galleries. I don’t think we have ever seen demand like this for our buildings.
Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?
We have purchased two office buildings in D.C., as we believe this market is well-positioned to attract higher-end law firms, lobbying and strategist groups, associations, and technology firms that seek quality office spaces like ours.
San Francisco just seems like a disaster, given the amount of crime and unpleasantness of the streetscape. The vacancy rate for office space in that city is just scary. I can’t tell you how many times I hear leaders in New York and D.C. say they don’t want to be like San Francisco. Miami also seems to be in a downward trend for office buildings, and we are avoiding that market.
How’s the financing climate for new development and redevelopment — hot, cold or just right?
Cold still, unfortunately.
What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration?
The City of Yes is quickly becoming the City of Maybe.
Do you still like Eric Adams?
Mayor Adams has very good intentions, but hasn’t been as effective as we need him to be. That said, he is terrific compared to his predecessor.
Lightning Round:
Your social media of choice?
LinkedIn for work, X and Instagram for non-work.
AI: Helpful in CRE or a fad?
Ultimately, very helpful.
Last movie you saw in a theater?
I can’t recall, which is kinda telling.
You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane?
KFC.
Tesla or BMW?
One of our all-electric MarxMobiles: the Porsche Taycan, Tesla Y or Rivian.
Will interest rates be below or above 4 percent on July 1, 2025?
Slightly below.
If you could partner with one person in the business on a property, who would it be?
Ian Schrager.
What are you tired of talking about?
The existential threat to office — we always have been believers in hospitality-infused office product and the need to collaborate and grow better together.
ned a five-year, 3,200-square-foot lease on the building’s ninth floor, while investment bank Peel Hunt signed a six-year, 3,000-square-foot lease on the 16th floor. Both firms will move into pre-built suites as part of the MarxReady program.
Hillcrest Finance was represented by Cushman & Wakefield’s Pierce Hance while Peel Hunt was represented by Scott Ansel of JLL. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz lead a team handling leasing for Marx Realty.
“This continual stream of new leases at 10 Grand Central further validate the value of our MarxReady pre-built series and the hospitality-infused repositioning of the property,” said Craig Deitelzweig, president and CEO of Marx Realty. “These two new leases highlight 10 Grand Central’s thoughtfully crafted, turnkey spaces that embody the building’s unique blend of hospitality and modern office design.”