The rebounding Manhattan workplace market simply received one other dose of robust drugs.
Memorial Sloan Kettering Most cancers Heart is shopping for greater than half of the Lipstick Constructing for roughly $300 million from proprietor SL Inexperienced, The Publish has realized.
The shocking deal is perhaps the evolving business scene’s most “out-of-the-box” transaction since Touro College leased a big chunk of Three Times Square in January.
It’s excellent news for Midtown, the place conventional tenants in finance and regulation have both shrunk their footprints or moved to the Far West Aspect or Downtown. However the general Manhattan market noticed its largest leasing quantity in August since December 2019, as The Publish reported.
MSK’s 414,317 square-foot dedication is just not a lease however a condominium buy. However it’ll have the identical impact of taking an enormous block of workplace house out of Manhattan’s “accessible” class when the sale closes by the yr’s finish. Publicly traded SL Inexperienced declined to remark.
The deal appeared to return out of the blue. No phrase of negotiations had leaked from both aspect, outstanding for such a big transaction at a high-profile location.
Memorial Sloan Kettering received’t be shifting beds into the tower at 885 Third Ave. at East 53rd Avenue, however somewhat plans to make use of its flooring for analysis and administrative places of work. It displays the development of medical establishments gobbling up house distant from their conventional hospital campuses stretched out alongside York Avenue on the Higher East Aspect.
SL Inexperienced will proceed to personal the Lipstick tower’s remaining 218,796 sq. toes that are almost 92% leased, in keeping with sources. Since assuming full management of the tower in 2020, the place it’s held an curiosity since 2007, the owner has begun repositioning it with new state-of-the-art facilities and infrastructure.
Newmark groups represented SL Inexperienced and Memorial Sloan Kettering.
SL Inexperienced, the town’s largest business landlord, holds pursuits in 64 buildings totaling 34.4 million sq. toes. Its signature properties embrace One Vanderbilt, One Madison Avenue, 1185 and 1350 Sixth Ave., and 280 Park Ave.
