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Healthcare Provider Inks 50,000 SF in Brooklyn; May Spur Me-Too Leases

BROOKLYN, NY-With a "month or two" of incentives clearing its way, Health Plus consolidates offices in a former industrial site here. Talks are in the works for more white-collar firms in the former industrial asset.

By John Salustri | Updated on June 12, 2001

BROOKLYN, NY-It may not be the richest lease ever inked in the five boroughs, but it may help to set the direction for commercial real estate in one Brooklyn neighborhood. Health Plus, a managed-care provider, has inked a five-year, 50,000-sf deal in Bush Terminal’s BITC building. Industry City Associates purchased and rehabbed the facility in 1999.

ICA director of real estate Bruce B. Federman tells GlobeSt.com that the lease terms include a five-year option and a five-year “put” on an additional 20,000 sf. Helping to seal the deal were city incentives that included tax breaks and energy credits. ICA also threw in “a month or two of abated rent,” which Federman says is “consistent with the market.” The annual value of the deal, he adds, is $900,000, bringing it to $4.5 million over five years. Some 250 Health Plus employees will be consolidated from various sites around the borough in what will now serve as the firm’s regional headquarters.

Federman is confident that BITC, which is 65% occupied with this transaction, will be filled by the summer of 2002. Further, he states that Health Plus is serving as an incubator for more health-care deals, and he’s currently in negotiations with other providers. He wouldn’t mention names.

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