Marx Realty secures $140 million loan for 10 Grand Central; provided by MetLife and arranged by Cushman & Wakefield team

August 20, 2019 - Financial Digest
Steve Kohn, Cushman & Wakefield

 

Mark Ehlinger, Cushman & Wakefield

 

Manhattan, NY Marx Realty (MNPP), a New York-based owner, developer and manager of office, retail and multifamily property across the U.S., has secured a $140 million loan to refinance its 10 Grand Central office tower located at 155 E. 44th St. in the Midtown East neighborhood. MetLife originated the loan and a Cushman team led by Steve Kohn, Adam Doneger, Mark Ehlinger, and Noble Carpenter III oversaw the assignment on behalf of Marx Realty.

10 Grand Central, 155 E. 44th Street, Midtown East -
Manhattan, NY

“The refinancing gives us the ability to continue offering best-in-class office spaces for today’s image conscious firms,” said Craig Deitelzweig, president & CEO of Marx Realty. “Occupancy at 10 Grand Central has increased from 78% to 91% since we announced our plans last year and we continue to get incredible feedback from brokers as well as existing and potential tenants across financial, technology and business services fields.”

Marx Realty recently completed a $48 million repositioning of the 35-story Ely Jacque Kahn-designed building which included a relocated entry portal and redesigned lobby as well as a 7,500 s/f amenity space including a lounge, conference facility and expansive outdoor terrace.

“The recent improvements to 10 Grand Central, coupled with its proximity to Grand Central Terminal, made this financing opportunity of great interest to many potential lenders,” said Kohn, vice chairman and president of EDSF for Cushman & Wakefield.

10 Grand Central represents a new asset class within the office sector by infusing the building with a game-changing hospitality aesthetic. A complete lobby redesign gives tenants and guests a hotel-like experience beginning with its relocated and redesigned four-story entry portal and uniformed doorman welcoming tenants and guests to the building. Additionally, the 7,500 s/f club floor is well-appointed with walnut wood finishes, herringbone concrete tile floors, lounge, cafe and an expansive terrace reminiscent of a 1930s era garden party, all of which represent a modern interpretation of Ely Jacques Kahn’s original Beaux Arts design aesthetic. A 40-seat conference facility rounds out the seventh-floor amenity offerings.

“Thanks to the Cushman & Wakefield team’s execution and the repositioning team’s tremendous success in seamlessly incorporating hospitality into the office product, we were able to have a host of lenders to choose from for this long-term loan,” said Deitelzweig. “We look forward to working with them again as we continue to add value throughout our portfolio.”

A number of new tenants have signed leases recently at 10 Grand Central including health tech company HLTH, international news agency Agence France-Presse, UK-based weekly magazine The Week, sports private equity firm 23 Capital, hedge fund group Macro Risk Advisors, asset management firm Everside Capital Partners, educational technology company Decoded; and private equity firm White Oak Partners. In addition, Marx Realty secured a 15,000 s/f 10-year renewal for real estate investment firm Benenson Capital Partners and a significant expansion for advertising association powerhouse ANA.

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