Northwell Well being is snapping up a long-vacant purchasing heart in Rego Park for $235.5 million, a deal that might pave the way in which for a serious healthcare conversion.
The hospital large bought the 338,000-square-foot Rego Park I retail complex from Alexander’s, the actual property funding belief managed by Vornado Realty Belief chief government officer Steven Roth, in line with the Commercial Observer. The deal breaks right down to $697 per sq. foot.
The sale is anticipated to shut within the third quarter.
The three-story property at 96-05 Queens Boulevard sits on six acres on the busy intersection of Queens Boulevard and Junction Boulevard, close to the Lengthy Island Expressway. Inbuilt 1959, the location features a 1,236-space parking storage and lengthy housed low cost retailers together with Burlington and Marshalls earlier than going darkish.
Alexander’s spent the previous yr clearing the advanced, relocating tenants and staff to the close by Rego Park II purchasing heart, a 605,000-square-foot open-air retail advanced the REIT additionally owns. The newly empty website provides Northwell a clean slate in one of many borough’s busiest industrial corridors.
The transaction is anticipated to generate roughly $202 million in proceeds for Alexander’s and produce a $145 million after-tax achieve, in line with an organization launch. The REIT will acquire about $48 million from operations tied to the property final yr and one other $97 million this yr.
The sale closes a roughly 30-year chapter for Roth, who gained management of Alexander’s within the mid-Nineties after a high-profile possession struggle with Donald Trump.
Trump owned about 27 p.c of the corporate whereas Roth held roughly 29 p.c. Trump’s stake was finally seized by lenders and bought to Roth in 1995 after he defaulted on loans tied to his lodge and on line casino properties, Crain’s reported.
What Northwell plans to do with the property stays unclear, although the size and site counsel a possible medical campus, outpatient hub or mixed-use well being care redevelopment. The well being system is the most important personal employer in New York with greater than 104,000 staff and roughly 900 outpatient services throughout New York and Connecticut.
In an announcement, Northwell referred to as the acquisition a “strategic funding,” including it intends to discover methods the location may develop entry to healthcare in Queens.
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