The Real Deal New York

NYU secures $600M in taxable bonds for Kips Bay medical center

Bank of New York Mellon holds the bonds
By Miriam Hall | May 31, 2017 04:22PM

Rendering of new science building nearby Tisch Hospital (Credit: NYU)

New York University Langone Medical Center locked down $600 million in taxable bonds for its new medical center in Kips Bay, according to property records filed with the city Wednesday.

Bank of New York Mellon is the trustee for the 2017A series bonds, secured by the property at 433 East 30th Street, the documents show. The securities are divided into amounts of $62.25 million and $537.75 million, according to the summary of offering.

Last year, the bank replaced state revenue bonds on three of the NYU Langone Medical Center’s properties. It replaced an original $217 million in 2006A bonds with $157.3 million in Series 2016A bonds, the Commercial Observer reported at the time. The bank had also previously replaced $77 million in Series 2007B bonds on the properties with Series 2014 bonds.

NYU is planning a new 10-story research center — which will include a 365,000-square-foot laboratory, according to reports — at 433 East 30th Street. That new facility will be close to the Helen L. and Martin S. Kimmel Pavilion at Tisch Hospital, which is under construction. The pavilion will be an 830,000-square-foot in-patient center and is set to open in 2018, NYU announced last year.

Representatives for NYU and Bank of New York Mellon were not immediately available for comment.