NYU Langone Coming to Long Island City
NYU Langone Medical Center plans to open a two-story, 45,000-square-foot multispecialty ambulatory care facility in Long Island City.
The health system agreed to a 31-year lease with Norvin Healthcare Properties for a site at 21-21 44th Drive. The Manhattan real estate private-equity fund bought the property for $66 million.
The lease agreement is considered “triple net,” which means NYU Langone will cover the property taxes, insurance and any maintenance or repairs the building needs.
Slate Property Group and private-equity fund The Carlyle Group filed permits last November to build an 88-unit condominium on the site owned by Bronx-based Hazy Realty. Interest from NYU Langone increased the value of the property, said Norman Livingston, Norvin’s president.
“When NYU came along it got our attention,” he said.
Carlyle helped negotiate the lease and a portion of the purchase price went to the private-equity fund, which held a contract for development on the site, with the rest paid to Hazy Realty.
Those initial condo plans reflect the strong demand for housing in Long Island City, which has added about 8,000 residential units since a 2001 rezoning. An additional 18,000 units are either planned or under construction, said Mr. Livingston.
All those new residents will need health care. The new facility “will satisfy that need in terms of both location and the comprehensive range of health care services that will be offered under one roof,” Mr. Livingston said. NYU Langone is an attractive tenant, he added, because of its plan to spend on renovations.
Increasing ambulatory care capacity in Queens mirrors a trend Mr. Livingston has seen in Texas, where Norvin owns 2 million square feet in health care facilities.
“What we see in a lot of markets and what we see in New York is a hub-and-spoke system,” he said. “You have the mother ship, and then the institutions like to spread out in a high-growth market where they can serve the needs of physicians. It’s all about getting quality physicians because they bring the patients.”
Other outpatient facilities in the area are affiliated with Community Healthcare Network, Wyckoff Heights Medical Center and Mount Sinai, which has a Queens hospital campus two miles from the new site.
The new location is accessible via four subway lines within two blocks and will be complete in 12 to 18 months, according to the Queens Times Ledger, which first reported the agreement. The property is adjacent to The Industry, a seven-story condo building, and Information Technology High School is located behind the future NYU Langone facility. Down the block is 1 Court Square, the tallest city building outside of Manhattan, where Citigroup is a tenant.
NYU Langone has eight ambulatory practices in Queens spread across 11 locations. The hospital confirmed the transaction but couldn’t immediately comment on the deal. The terms of the lease and a potential opening date were not disclosed.
In the six months ended Feb. 28, 2015, outpatient visits at NYU Langone were up 2.7%, to 442,424, according to financial statements the hospital released last month.
Credit: Crains Business