The Real Deal New York

NY Presbyterian checks in at RXR’s 237 Park

Hospital system finalizes lease for 500K sf

August 03, 2016 03:28PM

237 Park Avenue in Midtown

237 Park Avenue in Midtown

The administrative staff will see you now! New York-Presbyterian Hospital has finalized a lease to take 500,000 square feet at RXR Realty’s 237 Park Avenue.

The length of the lease and the asking rent for the space at the 1.2 million-square-foot office building were not immediately clear, according to Crain’s, which reported the deal.

The hospital system, the largest in New York City, has been searching for a new administrative headquarters where it can consolidate non-medical offices spread across various buildings into one location, as The Real Deal originally reported.

New York-Presbyterian zeroed in on buildings including Brookfield Office Property’s TRData LogoTINY One New York Plaza and Fosun Realty’s 28 Liberty, but ultimately decided to go with RXR’s 21-story building, which will be fully occupied when the hospital moves in.

RXR bought the property in 2013 for $800 million, then laid out millions of dollars in capital improvements in order to attract tenants. Current tenants include banks UBS, Credit Suisse and advertising firm J. Walter Thompson.

The hospital is the second significant medical tenant in recent months to move near Grand Central Terminal. The NYU Langone Medical Center inked a 390,000-square-foot lease at Columbia Property Trust’s 222 East 41st Street in April. [Crain’s]Rich Bockmann

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