Marx Realty Buys Iconic Herald Building in DC
The New York City-based firm is planning a $41 million renovation and repositioning of the historic property.
Marx Realty, a New York-based owner, developer and manager of office, retail and multifamily properties has acquired The Herald Building, a 114,000-square-foot 1920s-era office building in Washington, D.C., for $41 million and is planning to spend another $41 million renovate and reposition the asset to attract media, tech and financial services tenants.
The sellers were a group of education associations—the American Association of Colleges for Teachers Education, American Association of State Colleges and Universities, Council for Advancement and Support of Education and the National Association of State Universities and Land Grant Colleges, according to the Commercial Observer.
The transaction was a sale-leaseback deal giving the associations time to find new offices. The associations are slated to leave at the end of 2020. Marx Realty expects to be finished with its renovation by spring 2021, the Commercial Observer reported.
Located at 1307 New York Ave. NY, The Herald was built in 1923 in a Beaux-Arts style and is the former home of the offices and printing presses of the Washington Herald Examiner. Marx Realty, noted for its repositioning of 10 Grand Central in Manhattan, plans to enhance the historic elements of the building and add a hospitality aesthetic. Other plans include updating the entry portal with an intimate foyer that would open to an expansive lobby and lounge space with ample seating and 19-foot ceilings. Marx Realty will also add a library, banquette spaces, café with outdoor seating, 40-seat boardroom, 8,800-square-foot lounge and fitness center with private workout rooms.
EMBRACING SOCIAL DISTANCING
The firm said it expects asking rents to be in the $60 to $75 per square foot range. Marx Realty will be working David Burns of Studios Architecture, which repositioned 10 Grand Central and 545 Madison Ave. in Manhattan as well.
Craig Deitelzweig, Marx Realty president & CEO, said in a prepared statement the Herald Building is exceptional because of its very high ceiling heights and its important history. He expects to transform the building into a contemporary office space that has the look and ambiance of a luxury hotel. The firm will feature mood music and have its signature scent infused through the duct work.
In a nod to changes that will be necessary and/or expected in a post-COVID-19 world, Marx Realty will be using material like brass and copper that tend to be anti-microbial. The doorman and lobby personnel will work together to reduce the need for tenants and visitors to come in contact with surfaces. The company will also implement its proprietary Marx Connect software interface to minimize physical interaction.
Marx Realty owns 67 properties in 17 states with more than 5 million square feet of office, retail and residential space along with five mixed-use projects under development. The company has other assets in the metro D.C. area including 819 7th St. in the city and five northern Virginia properties.
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