Ding “John” Wai’s Sentry Operating Corp. is purchasing a former Queens hospital for $125 million, sources told The Real Deal.
The building, at 90-02 Queens Boulevard in Elmhurst, was formerly part of St. John’s hospital, and spans about 260,000 square feet. The purchase also includes a five-story parking garage across the street at 87-28 58th Avenue, which will remain in its current state to provide tenants with parking.
The seller, Steven Wu and a group of Asian investors, purchased the property in 2014 for $55 million, and turned it into a multifamily and retail property. The main building now comprises 144 apartments and 120,000 square feet of retail and community space.
The deal is slated to close Friday. Madison Realty Capital is slated to provide a $55 million first mortgage to finance the purchase in a deal brokered by Maverick Capital Partners’ Adi Chugh. Madison previously provided Wu with $70 million in acquisition and project financing for the conversion. Leasing is yet to kick off at the property.
“There’s a lot of things happening in this submarket,” said Madison’s Josh Zegen. “The product that’s being developed here is Class A multifamily and that’s new for the area.”
Sentry recently sold a two-story parking garage at 75 Kenmare Street at the corner of Mulberry Street to DHA Capital for $50 million. The acquisition of the Elmhurst property is part of a 1031 exchange.
The deal is closing just one day before Sentry’s 1031 expires, Chugh said.
“Talk about taking it to the brink,” he said.
Earlier this year, Madison shelled out $31 million for a nearby assemblage — located on a block bound by Queens Boulevard, 47th Avenue and 69th and 70th streets – which can hold up to nearly 358,000 buildable square feet.
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