New York's biggest hospital system is in talks to acquire a collection of residential and retail properties on Third Avenue between East 76th and East 77th streets.
Northwell Health, which owns 18 hospitals in and around the city, including Lenox Hill Hospital, a block away from the Third Avenue site, could demolish the properties and erect a 250,000-square-foot building in their place, a source said.
Northwell is negotiating a sum close to $300 million for the parcels, according to the source, which would work out to nearly $1,200 per square foot. Only a handful of development sites have traded hands at such prices—all became high-end residential construction.
It wasn't immediately clear what use Northwell has in mind for the site. A spokeswoman for Northwell said the hospital system would not comment. The Glick family, the owners of the properties, also declined to speak about the potential deal.
The Upper East Side has been experiencing a boom in medical real estate development. Just last week Memorial Sloan Kettering signed a 48-year, nearly $86 million lease for a more than 100,000-square-foot building at 330 E. 62nd St., the New York Post reported.
Cushman & Wakefield leasing broker Mark Weiss, who has worked with medical tenants before, and sales broker Bob Knakal are arranging the Northwell deal. Neither could be reached for comment.
"Northwell in talks to buy pricey collection of Third Avenue parcels" originally appeared in Crain's New York Business.