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New York

Memorial Sloan Kettering takes 430K sf at Lipstick Building

Hospital buys two-thirds of SL Green's Midtown tower in one of the city’s largest office deals this year

SL Green's Marc Holliday and 885 Third Avenue (Getty)
SL Green's Marc Holliday and 885 Third Avenue (Getty)

Memorial Sloan Kettering Cancer Center is taking over the majority of Midtown East’s Lipstick Building in one of the largest office deals of the year.

The hospital is buying about 430,000 square feet, or roughly two thirds of the 34-story tower at 885 Third Avenue from SL Green Realty, property records show. Financial terms of the deal are unclear.

A spokesperson for Memorial Sloan Kettering said the investment is part of the “long-term financial planning and cost-efficiency strategy” and that the hospital will consolidate other office locations when it moves into the building in 2024.

SL Green Realty did not immediately respond to a request for comment.

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At 430,000 square feet, it falls just shy of KPMG’s roughly 456,000-square-foot lease at Brookfield’s 2 Manhattan West, the city’s largest office deal this year.

Tenants signed leases for 3.4 million square feet of Manhattan office space in August, the most in any month since January 2020, before the start of the pandemic, according to data from Colliers International.

Memorial Sloan Kettering is taking the entire base of the Lipstick Building, or floors three through six, as well as several stories in the tower portion. The space became available after the building’s previous largest tenant, law firm Latham & Watkins, relocated to a similarly sized space at 1271 Sixth Avenue.

The building is known for its distinctive oval shape and pink color, as well as for being the one-time headquarters of the notorious Ponzi schemer Bernie Madoff.

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Memorial Sloan Kettering Cancer CenterSL Green