Carnegie Diner & Cafe Operator to Open New Restaurant at 7 Penn Plaza
By Emily Davis October 22, 2026 4:36 pm
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Carnegie Hospitality is opening its next Carnegie Diner & Cafe in Manhattan’s Penn District.
The restaurateur signed on the dotted line last month to take over fast-casual chain Smashburger’s lease at the Feil Organization’s 7 Penn Plaza, Commercial Observer has learned. The tri-party deal included a 10-year lease extension for the 5,609-square-foot retail space at the corner of Seventh Avenue and West 31st Street.
Newmark‘s Jeffrey Roseman represented Carnegie in the deal, while the Feil Organization’s Randall Briskin negotiated in-house for the landlord. The asking rent was not disclosed, but retail rents in the nearby Herald Square shopping corridor averaged $412 per square foot in the first half of 2026, according to the Real Estate Board of New York.
Carnegie Diner plans to open in the Penn District in November, a Newmark spokesperson told CO. Its space spans a 3,110-square-foot ground floor, an 865-square-foot mezzanine level and a 1,634-square-foot basement.
Carnegie’s new neighbors at 7 Penn — which also has an address of 370 Seventh Avenue — include bagel chain PopUp Bagels, açaí shop Oakberry Açaí, and popular lunch spots Sweetgreen and Naya.
Cap Street Advisors‘ Gui Tepedino represented Smashburger in its share of the deal. The burger chain’s website currently lists one remaining location in Manhattan at 804 Lexington Avenue. It operates several more in the city’s outer boroughs.
“Smashburger has made the decision to transition out of our 7th and Penn restaurant in New York City as we focus on our broader New York metro locations,” a spokesperson for the chain told CO in a statement.
Carnegie Hospitality currently operates nine New York City locations, the majority of which operate as Carnegie Diner & Cafe. Carnegie also runs two stand-alone restaurant concepts: Delos Greek Restaurant at 102 West 47th Street and Voco Roofbar at 170 West 48th Street.
Late last year, Carnegie Hospitality leased 8,450 square feet at Jack Resnick & Sons’ 200 Chambers Street for a combined Carnegie and Delos Greek location, Commercial Observer previously reported.
Spokespeople for Carnegie and Tepedino did not immediately respond to requests for comment.
Emily Davis can be reached at edavis@commercialobserver.com.
