NEW YORK CITY—"It's the first office building that marries hospitality with office," explains Craig Deitelzweig, Marx Realty's president and CEO. He spearheaded the $45 million renovations recently completed at 10 Grand Central, the art deco skyscraper standing at 155 E. 44th St.
"So many buildings are white, marble clad. Close your eyes and open them and you could be in Dubai or Ohio. There is often no reference to the city. We are the opposite of that. Each of our assets will really speak to the character of the building." Part of the repositioning returned the front door to E. 44th St., where it originally was located for access to Grand Central Terminal. Over the years it was moved and the office tower had the address of 708 Third Ave.
Ten Grand Central has green details in reference to the green color of the historic transportation hub referenced in its name, which is conveniently down the street. "We have been finding tenants have been really embracing the building's character," says Deitelzweig.
And the numbers are backing up Marx Realty's capital improvement campaign. Prior to the repositioning rents at the building were averaging $48 per square foot in the base, with asking rents at $75 per square foot in the mid-rise level and $78 per square foot in the high-rise tower suite. Now, the asking rents range from $72 to $97 per square foot. Plus, the building is 89% leased.
Merchants' National Properties bought the property in April 2007 for $121.5 million. Marx Realty is the company's management, leasing and development subsidiary, which has 71 assets in 16 states. In August 2017, Deitelzweig was hired and tasked with repositioning the properties to maximize their value.
He started his career at Skadden Arps. But the real estate attorney then worked at Rockrose Development and Ruben Companies in repositioning and developing properties often focusing on offices. Plus, he oversaw work on 70 hotels during his career including the W Hotel in South Beach, FL.
Deitelzweig combined his experiences with office and hotel properties with his passion for architecture, history and design. He worked closely with David Burns, principal of Studios Architecture. In a year's time, the Midtown East building was transformed into 10 Grand Central.
The 35-story, 359,326-square-foot office tower was built in 1931 and originally design by Ely Jacques Kahn. The redesign avoids resembling a retro movie setting or Disneyworld. Instead it serves as a modern interpretation of what the architect was building or what he would have liked the building to be today, according to Deitelzweig. "The entire building was created to be evocative of a 1930s hotel space," he adds noting this will stand the test of time.
Tenancy is not sheerly based on a credit sheet. Deitelzweig wants tenants to find a professional home where they can mix and mingle in the lounge and terrace. As another building amenity, there's a 1930s style bar cart, with an honor bar available from 5:00 pm to 10:00 pm.
Current tenants include Benenson Capital, White Oak, Equity Partners, Marks O'Neill, TRNC, PMC Treasure, World Federalist Movement, CGB, Global Source Partners and The Week. An industry source tells GlobeSt.com "The Rock" Dwayne Johnson's movie production company is also in the building.
View the slideshow above to see how hotel design is entering the corporate office space. (All photos were taken by Betsy Kim. The exterior building rendering was an image provided by Marx Realty.)
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
