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NewYork-Presbyterian pays $251M for 30-year leasehold condo at 237 Park

Deal takes advantage of tax benefits allotted to nonprofits

From left: NewYork-Presbyterian's CEO Steven Corwin, RXR's Scott Rechler and 237 Park Avenue
From left: NewYork-Presbyterian's CEO Steven Corwin, RXR's Scott Rechler and 237 Park Avenue

NewYork-Presbyterian Hospital paid nearly $251 million – or about $500 per square foot – for its 500,000-square-foot office space at 237 Park Avenue. And if that seems like a bargain, consider the fact that they have to give it back to their landlord after 30 years.

The hospital paid $250.8 million to buy a leasehold condominium interest at RXR Realty’s 1.2 million-square-foot Midtown office building, property records filed with the city Thursday show.

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As a nonprofit, New York Presbyterian enjoy tax benefits by owning, rather than leasing, its office space. RXR created an office condo for the hospital to buy that dissolves after 30 years.

SL Green Realty created a similar structure for the Visiting Nurse Service of New York when it took 308,000 square feet at 220 East 52nd Street.

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