The Real Deal New York

Beth Israel looks to sell part of East Village campus

Hospital markets full block between East 16th and 17th streets

June 08, 2016 11:48AM

Beth Israel's east Village campus

Beth Israel’s East Village campus

UPDATED, June 8, 3:26 p.m.: Mount Sinai Beth Israel hospital is looking to sell part of its East Village campus.

The hospital put the Gilman Building at 353 East 17th Street on the market, a spokesperson told The Real Deal. Beth Israel announced in May that it plans to close its East Village hospital and open a smaller facility nearby. The spokesperson added the the hospital itself won’t be sold for another four years until an alternative facility is built.

Whoever buys it could potentially also buy air rights from neighboring housing complex Stuyvesant Town-Peter Cooper Village – provided City Council sanctions such a deal. When the Blackstone Group and Ivanhoe Cambridge bought the complex in December, the de Blasio administration pledged to support an air rights sale in return for affordability concessions and a commitment not to build on the Stuy Town site.

Eastdil Secured’s Doug Harmon is marketing the property. It was unclear what the building is expected to sell for.

Amid a shortage of vacant lots, hospitals make an attractive target for developers. For example, in 2014, Fortis Property Group paid $240 million for the Long Island College Hospital in Cobble Hill, where it plans to build residential towers. [NYP] — Konrad Putzier

CORRECTION: an earlier version of this post misidentified the buildings Beth Israel is looking to sell.

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