The Real Deal New York

Mount Sinai looks to sell 156-unit Gramercy apartment building

24-story Gilman Hall could sell for $80M: source

May 24, 2016 05:20PM

Mount Sinai Beth Israel

Mount Sinai Beth Israel

One of Manhattan’s struggling hospitals is looking to sell a 24-story Gramercy rental building that one source familiar with the property said could go for upwards of $80 million, or about $550 per square foot.

The 146,000-square-foot building known as Gilman Hall, located at 301 First Avenue, holds 156 apartments.

The owner, Mount Sinai Beth IsraelTRData LogoTINY, is hoping to help stop the fiscal bleeding. The hospital lost $85.6 million in the first three quarters of 2015, which put it on track to surpass the $90.7 million it bled the year earlier.

The property, constructed in 1969, houses medical residents, or doctors who are training under the watch of an attending physician. Tenants in the building have been informed that they will have to vacate by the end of June, according to Crain’s, and some will move into Stuyvesant Town or the Waterside Plaza complex on the East River, while others will move to apartments near Mount Sinai West on the Upper West Side.

Developers continue to look toward struggling hospitals in order to capitalize on their real estate holdings.

Back in 2011, Rudin Management bought St. Vincent’s Hospital in Greenwich Village out of bankruptcy and redeveloped the property into condos. Fortis Property Group last year bought Long Island College Hospital in Brooklyn and plans to develop high-rise residential buildings on the property. [Crain’s]Rich Bockmann

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