New york city Presbyterian Healthcare facility Indications 500,000-SF Workplace Deal at Park Opportunity Atrium

New york city City’s biggest healthcare facility New York-Presbyterian Health center has signed a workplace deal to inhabit nearly 500,000 square feet in the Park Opportunity Atrium office complex at 237 Park Ave. (466 Lexington Ave.) in New York, NY.

In order to supply the medical facility with specific tax advantages, the transaction was structured as a sale to the medical facility of a 30-year leasehold condominium interest in a portion of the structure amounting to 471,016 square feet, instead of a lease deal. The condominium sale was valued at $250.87 million, or about $533 per square foot.

The deal brings direct vacancy in the tower from 40.3% to 7%, and, consisting of sublease space offered there, the general job down to 22.7% from a high of 56% in the previous quarter. Other tenants in the structure include the Canadian Embassy, Convene, J. Walter Thompson and Jennison Associates LLC.

RXR Real estate acquired the home with Walton Street Capital in October 2013 from Lehman Brothers Holdings, Inc. for $820 million ($659 pSF), according to CoStar information, and instantly started remodeling the property.

See CoStar COMPS # 2873682.

The 21-story, 1.24 million-square-foot, 4-Star office building was originally built in 1915 on 1.3 acres in the Grand Central submarket of Manhattan, in between 45th and 46th Streets. Remodelled in 2015, the steel tower features street-level retail space, 11 1/2-foot slab heights, a 27% core factor, 24-hour accessibility, terrace and atrium area, security system, public transit, and on-site banking, concierge, food service and management.

Paul Glickman, Mitchell Konsker, Cynthia Wasserberger and Daniel Turkewitz with JLL represented the property manager in negotiations. Meyer Last, Jennifer Yashar, Valerie Kelly, Simon Elkharrat and Benjamin Cohen with law office Fried Frank acted as counsel to the property manager on the offer, and additionally Fried Frank’s Joshua Mermelstein, Avi Feinberg, Alexander Sutherland and Vincenzo Sessa represented the company in its considerable refinancing with Morgan Stanley and Societe General on the home loan secured by 237 Park Ave.

John Cefaly and Michael Burgio with Cushman & & Wakefield represented New York-Presbyterian Medical facility.

Please see CoStar COMPS # 3946058 for additional details on the leasehold transfer.

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