Architectural rendering of 323 E. 61st St., which has the alternate address of 333 E. 61st St.
NEW YORK CITY—Memorial Sloan Kettering has leased 100% of the 75,000 square-foot space at 333 E. 61st St., which also has the address of 323 E. 61st St. The new six-story medical office building is located between First and Second avenues on Manhattan's Upper East Side. The cancer center and research institution agreed to the deal with the property owners, LaSalle Investment Management and William Macklowe Company.
According to sources familiar with the transaction, the tenant signed a 30-year lease at an asking rent of approximately $70 per square foot. The Macklowe Company and LaSalle were represented by Bill Hartman of Cushman & Wakefield. Memorial Sloan Kettering was represented jointly by Mark Weiss of Cushman & Wakefield, and Neil Goldmacher and Howard Kesseler of Newmark Knight Frank.
In March of 2018, LaSalle acquired a majority interest in the property through a joint venture with William Macklowe Company. The new 75,000-square-foot medical facility will replace the existing structure, and serve as a purpose-built clinical, research and administrative space.
“We are pleased to have Memorial Sloan Kettering Cancer Center, a world leader in the diagnosis and treatment of cancer, as the entire-building tenant at 333 East 61st Street,” says Steve Bolen, managing director and US sector head for medical office at LaSalle. “This project represents a continuation of our successful healthcare real estate partnership with the William Macklowe Company, a leading owner/developer of commercial, healthcare and residential properties in New York City.”
“We are thrilled to meet the deep demand for high quality medical facilities in one of the most supply constrained sub-markets in the country,” says Billy Macklowe, CEO of William Macklowe Company.
As previously reported by GlobeSt.com in October 2018, the owners received a $35 million construction loan for the development.
Jim Garvey, portfolio manager for LaSalle Property Fund noted the most recent investment furthers their strategy of acquiring well-located core assets with stable cash flow and upside potential.
The development is situated in Manhattan's “Hospital Row,” which has a cluster of world renowned hospitals, medical schools, research centers and outpatient facilities. This includes NewYork-Presbyterian/Weill Cornell Medical Center, Weill Cornell Medical College, Memorial Sloan Kettering Cancer Center, Hospital for Special Surgery and Rockefeller University.
In addition to the E. 61st St. project, the Macklowe Company and LaSalle Investment Management are co-owners of 156 William St. which they converted into a medical office building in Lower Manhattan.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
