NYU Langone Medical Center Recast and Expansion
NYU Langone Medical Center sought to recast and expand the existing 187,000-square-foot lease at One Park Avenue, with a close proximity to the Medical Center and availability of vacant space on large, flexible floorplates. The expansion would accommodate the near-term growth and the $1.8 billion master-planned redevelopment of the Medical Center. The total immediate expansion requirement was 150,000 square feet but flexible expansion options would be required to allow for future growth. Its existing building (with 187,000 square feet occupied) was about to enter special servicing.
NYULMC engaged Cushman & Wakefield to analyze its current administrative space portfolio and structure a long-term occupancy solution that would accommodate its current and projected requirements, while taking advantage of favorable market conditions and leveraging its 501(c)(3) tax-exempt status.
Vornado Realty Trust (“Vornado”), through a joint venture partnership with One Park Avenue’s current ownership (Murray Hill Properties), contracted to purchase and recapitalize the asset from special servicing, contingent upon the execution of a long-term lease by NYULMC’s parent company, NYU.
Cushman & Wakefield sucessfully negotiated with Vornado a long-term lease (closed in February 2011) for 370,000 square feet, with numerous expansion options, and more than $225 million in savings.