NewYork-Presbyterian Refinances UES Tower for $186M

NewYork-Presbyterian secured fresh financing for its multipurpose tower on the Upper East Side.

The Dormitory Authority of the State of New York provided $186.1 million to the hospital system to refinance the Helmsley Medical Tower at 505 East 70th Street, the Commercial Observer reported. Spokespeople for both the hospital and the lender declined to comment to the observer.

The refinancing was first reported by PincusCo.

The financing replaces a $171.4 million loan on the property, which is also addressed at 1320 York Avenue. DASNY was also the lender on that deal.

The hospital requested the financing from DASNY in January as it sought to refund multifamily revenue housing bonds from the New York City Housing Development Corporation. Those bonds were the initial financing mechanism for the 36-story, 517-unit property. The building includes medical clinics, hotel rooms and staff housing, ranging from studio apartments to three-bedroom units.

The hospital system recently signed a lease for 10,000 square feet at Simone Development Companies’ 2510 Westchester Avenue in the Bronx, where it will operate a primary care facility.

Three years ago, NewYork-Presbyterian signed a 20-year lease for an Och Spine outpatient care facility at Tishman Speyer’s The Spiral in Hudson Yards. The facility occupies 75,000 square feet on the second floor of the building, 66 Hudson Boulevard, and includes on-site radiology and spine treatment, procedure rooms, a physical therapy gym and a collaborative space for physicians.

Elsewhere in the neighborhood, the City Planning Commission certified Northwell Health’s application for a 1.4 million-square-foot medical complex in February, launching the seven-month review process to rezone the site.

The planned renovation includes two new buildings and additions to the existing hospital for 475 single-bed rooms, 30 operating suites and a larger emergency department, according to plans filed with the city.

— Holden Walter-Warner