Brooklyn BTS Property Welcomes Healthcare Tenant

When completed next year, 101 Pennsylvania Ave. will have about 75,000 square feet of medical office space.

New York CITY—EmblemHealth has leased a new 160,000-square-foot built-to-suit property in the East New York section of Brooklyn. Groundbreaking for the building, located at 101 Pennsylvania Ave., was held in January by the landlord, Atlantic 2644 LLC. EmblemHealth was represented by JLL’s Jim Wenk, managing director. Atlantic 2644, the developer, was represented in-house by Jonas Rudofsky, managing partner. Venable provided real estate counsel for the tenant while Schulte, Roth & Zabel provided real estate counsel for the building owner. EmblemHealth signed a 20-year lease for the 160,000-square-foot 101 Pennsylvania Avenue in December 2014. When completed in the third quarter of 2017, the new building will comprise approximately 75,000 square feet of medical office space and about 90,000 square feet of structured parking. “EmblemHealth sought to replace its existing facility and greatly enhance its service offerings in the East New York section of Brooklyn to bring outpatient and ambulatory care services closer to its customers,” says Wenk. “With limited options in the surrounding area for an advanced medical facility, we soon realized a build-to-suit would be the best option for EmblemHealth.” He continues, “We partnered with the developer to design the new facility and structure a lease transaction that would meet all of the client’s needs. When completed, 101 Pennsylvania Ave. will take its place as one of EmblemHealth’s largest medical centers and a centerpiece of the neighborhood.” The medical office building will be on the corner of Atlantic and Pennsylvania Avenues. The ground floor will include a lobby and ambulatory care treatment facilities, with parking for about 153 cars on the second floor through the fourth floor, and medical office space on the fifth floor through the seventh floor. Alan Goodkin, managing director, Ackman-Ziff Real Estate Group, arranged $66.5 million in construction financing for the project with Union Bank.