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.
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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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