Memorial Sloan Kettering Leases Entire 333 E. 61st St. Building
Lasalle Investment and William Macklowe Company agreed to lease their 75,000-square-foot new medical facility on Manhattan’s Upper East Side.
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.