The rebounding Manhattan workplace market simply acquired one other dose of sturdy medication.
Memorial Sloan Kettering Most cancers Heart is shopping for greater than half of the Lipstick Constructing for roughly $300 million from proprietor SL Inexperienced, The Submit has realized.
The stunning deal is perhaps the evolving industrial scene’s most “out-of-the-box” transaction since Touro School leased a giant chunk of Three Instances Sq. in January.
It’s excellent news for Midtown, the place conventional tenants in finance and regulation have both shrunk their footprints or moved to the Far West Aspect or Downtown. However the general Manhattan market noticed its largest leasing quantity in August since December 2019, as The Submit reported.
MSK’s 414,317 square-foot dedication shouldn’t be a lease however a condominium buy. However it can have the identical impact of taking a giant block of workplace house out of Manhattan’s “out there” class when the sale closes by the 12 months’s finish. Publicly traded SL Inexperienced declined to remark.
The deal appeared to return out of the blue. No phrase of negotiations had leaked from both aspect, exceptional for such a big transaction at a high-profile location.
Memorial Sloan Kettering gained’t be shifting beds into the tower at 885 Third Ave. at East 53rd Road, however moderately plans to make use of its flooring for analysis and administrative places of work. It displays the pattern of medical establishments gobbling up house distant from their conventional hospital campuses stretched out alongside York Avenue on the Higher East Aspect.
SL Inexperienced will proceed to personal the Lipstick tower’s remaining 218,796 sq. ft that are practically 92% leased, in response to sources. Since assuming full management of the tower in 2020, the place it’s held an curiosity since 2007, the owner has begun repositioning it with new state-of-the-art facilities and infrastructure.
Newmark groups represented SL Inexperienced and Memorial Sloan Kettering.
SL Inexperienced, the town’s largest industrial landlord, holds pursuits in 64 buildings totaling 34.4 million sq. ft. Its signature properties embody One Vanderbilt, One Madison Avenue, 1185 and 1350 Sixth Ave., and 280 Park Ave.