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 44^th 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.