Sloan-Kettering bails on Sutton tower buy, loses $5M deposit

New York /
Nov.November 18, 2008 03:34 PM

 
Memorial Sloan-Kettering Cancer Center backed out of a deal to purchase a 25-story Sutton Place apartment building for $57 million, losing its $5.7 million deposit, a source with knowledge of the deal said.

The hospital went into contract for the 50-unit, Weinberg Properties-owned Sutton Place building, at 360 East 57th Street, just under a year ago, but backed out last week before the expected closing this week, the source said. The hospital, at 1275 York Avenue at 69th Street, did not need financing for the tower, which was slated to be used as housing for staff and doctors, the person said.

Weinberg’s president, Samuel Weinberg, declined to comment. The hospital did not immediately respond to a request for comment.

The hospital was represented by Cushman & Wakefield in the deal and the building was represented by Massey Knakal Realty Services.

The tower has 85,000 square feet of commercial space and about 15,000 square feet of commercial and storage space, according to Propertyshark.com, giving it a price of $570 per square foot.

Memorial Sloan-Kettering is considered a well-funded institution that would be able to withstand the loss of the down payment, hospital industry sources said.

Craig Evans, senior managing director at real estate services firm Colliers ABR, who was not involved in the deal, said buyers are pulling out of deals as real estate values decline.

It is not clear why the hospital reneged on the deal, but contracts are generally broken when a property has lost more value than the deposit is worth or the buyer cannot get financing, he said.

“There are contracts being dropped with some regularity now because we had such a run-up in values over the past two years,” he said.

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
From left: Joseph Chetrit and Park West Village; 575 Amsterdam Avenue (middle); Douglas Eisenberg and 160 Riverside Boulevard (Getty Images, LoopNet, Google Maps)
Multifamily led Manhattan’s biggest loans in August
Multifamily led Manhattan’s biggest loans in August
Tim Foley (Anywhere, Getty Images)
Anywhere Real Estate’s Tim Foley resigns
Anywhere Real Estate’s Tim Foley resigns
Suburbanites with pitchforks as two hands ripping building plans
Suburban Nimbys oppose more housing. Do they have a point?
Suburban Nimbys oppose more housing. Do they have a point?
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
(Illustration by The Real Deal with Getty)
Rising mortgage rates lock out homebuyers, trigger layoffs
Rising mortgage rates lock out homebuyers, trigger layoffs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...