Memorial Sloan-Kettering Cancer Center and City University of New York Hunter College have acquired 66,000 square feet of vacant land at 525 E. 73rd St. from the City of New York and its Economic Development Corporation for $215 million.
The Upper East Side property will become home to Sloan-Kettering’s new state-of-the-art 750,000-square-foot health care facility and Hunter’s new 336,000-square-foot Science and Health Professionals Building. The area proposed for development is between East 73rd and East 74th streets and east of York Avenue to the FDR Drive.
As part of the deal, CUNY’s Brookdale campus at East 25th Street, the location of the Hunter-Bellevue School of Nursing, will eventually be vacated and the property will be returned to the city. Through “a public planning process,” the site will be redeveloped to include a sanitation garage facility, residential development and public space.
“Not only will these two great institutions play a critical role in creating great jobs in the city’s growing industries, but they usher in the innovators and medical advancements of tomorrow,” Mayor Michael Bloomberg said in a statement.
Steven Simkin, a partner at Paul, Weiss, Rifkind, Wharton & Garrison, and counsel Allen Wieder, represented Sloan-Kettering.
Meredith Kane, a real estate partner at Paul Weiss, and counsel Andrew Wurzburger, represented CUNY.
CUNY was represented in-house by general counsel Frederick Schaffer, senior vice chancellor for legal affairs; Gustavo Ordonez, deputy general counsel; Linda Myles, associate general counsel, and Gail Adinoff Scovell, counsel to the president of Hunter College and director of the office of legal affairs.
Connie Wu, a senior counsel in the Economic Development Division of the city’s Law Department represented the city and its Economic Development Corporation.
The project will create about 3,200 construction jobs and 830 permanent jobs, according to the Economic Development Corporation. Construction is expected to be completed by 2018.
No one would comment on the cost to develop the two new facilities. Media reports estimated the costs at $1 billion for the Sloan-Kettering facility and $400 million for the Hunter building. The project is being handled by Ennead Architects and Perkins Eastman, according to a CUNY spokesman.
The East 73rd Street site was formerly the location of a New York City Department of Sanitation garage that was demolished a few years ago. In 2011, the Economic Development Corporation sought proposals for the “expansion or creation of a health care, education or scientific research facility.”
Hunter College’s nursing and physical therapy programs and research labs will move to the new East 73rd Street facility. Hunter’s nurses and science researchers will have the “opportunity to develop new collaborations and expand existing ones with Memorial Sloan-Kettering,” Matthew Goldstein, CUNY’s chancellor, said in a statement.
The new facilities at East 73rd Street will be easily accessible to Hunter’s main campus at East 68th Street and will be within walking distance of Sloan-Kettering’s inpatient hospital and main campus at 1275 York Ave.
Sloan-Kettering’s new high-tech location will include an outpatient treatment center for lung, head, neck and hematological cancers, and bone marrow transplants, along with other services.
The new facility “will play a critically important role in our overall cancer care delivery system,” Dr. Craig Thompson, president and CEO of Sloan-Kettering said in a statement. “It will have a patient-oriented physical design—equipped with almost everything patients will need under one roof.”
The creation of these two world-class medical facilities demonstrates an “unwavering commitment to expanding science and research activity in New York City,” Seth Pinsky, the Economic Development Corporation’s president, said in a statement.
David Ehrenberg, the corporation’s executive vice president, and vice presidents Tawan Davis and Christina DeRose, and assistant vice president Charles Gans, handled the deal on behalf of the city.
Mark Weiss, a vice chairman at Newmark Grubb Knight Frank, along with executive managing director Howard Kesseler and director Justin DiMare, acted on behalf of Sloan-Kettering and assisted in the relocation of the sanitation department’s facility.
AMOREPACIFIC Corporation, a producer of luxury cosmetics, will be consolidating its offices at 1385 Broadway. The international cosmetic group has signed a 10-year lease for 6,200 square feet, a portion of the 10th floor, at the Midtown office building.
Offices will be relocating from 138 Spring St. in SoHo and 270 Sylvan Ave. in Englewood Cliffs, N.J. AMOREPACIFIC Beauty Gallery and Spa, its flagship store launched in 2003, will remain at 114 Spring St.
The 23-story, more than 533,000-square-foot Broadway office building, at West 38th Street, is owned by B. Bros. Broadway Realty, an affiliate of Bloomingdale Properties Inc. It also handles properties for the descendants of the founder of Bloomingdale’s department store.
AMOREPACIFIC wanted to be in a “more central” location to its buyers and one that would allow for “future growth,” Ed Wartels, vice president of Cresa, said in a statement. Wartels handled the lease on behalf of the tenant. The cosmetic company did not respond to a request for comment about the consolidation.
Seth Chaikin, an associate at Davis & Gilbert, represented the tenant.
Peter Batten, of counsel at Bingham McCutchen, represented the landlord.
The asking rate per square foot at 1385 Broadway is in the mid-$40s. Some of the capital improvements to the building include a new entrance and lobby, energy efficient windows and new elevator cabs and mechanicals.
For more than six decades, AMOREPACIFC has provided high performance skincare products using Asian botanicals with cutting-edge technology in nearly 30 different brands. Retailers such as Sephora, Bergdorf Goodman and Neiman Marcus carry its line of luxury products, which include herbal medicinal cosmetics brand Sulwhasoo and hydrating technology brand Laneige.
The cosmetic group was founded in South Korea and has offices in Los Angeles and Japan; Hong Kong and Taiwan are among its affiliate locations.
Diana Gaines and David Malawer, senior directors at Cushman & Wakefield Inc. along with vice chairmen Gary Greenspan and Jonathan Serko handled the lease for the landlord.
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