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Weill Cornell Medicine has signed a 300K SF deal to build a new healthcare facility in a Midtown building where it already has administrative offices.
The academic institution and healthcare provider has signed a 30-year lease at 575 Lexington Ave. that adds 100K SF to the space it occupies today at the building, it announced Monday.
Weill Cornell plans to build out the new space in the building to create a clinical care facility expected to open in 2025. It will now take up nine floors in the 35-story tower, where its previous 200K SF are dedicated to administrative facilities for its institutional staff. Construction on the space, which includes a separate lobby entrance, is expected to start next spring.
The expansion is among the largest leases so far this year in Manhattan.
The Midtown Manhattan building is owned by a joint venture between George Comfort & Sons and Cannon Hill Capital Partners. The healthcare institution is the largest tenant in the 754K SF building.
“We are thrilled to extend our long-term relationship with Weill Cornell Medicine, a bedrock New York City institution dedicated to improving patient outcomes and preparing the next generation of leaders in health care,” George Comfort & Sons President and CEO Peter Duncan said in a statement.
Newmark’s David Falk, Andrew Sachs and Ben Shapiro brokered the deal on behalf of Weill Cornell, while George Comfort & Sons’ Duncan and Dana Pike represented ownership in-house.
One of Weill Cornell's neighbors in the building is WeWork, which signed a 117K SF lease in 2018. Spokespeople for the landlords and WeWork confirmed to Bisnow WeWork is still a tenant in the tower. The coworking company said last month it is looking to exit more locations and renegotiate nearly all of its existing leases as it approaches a possible bankruptcy.
Aareal Capital and funds managed by Oaktree Capital Management and Paramount Group are lenders on the building and collaborated on the Weill Cornell lease because of its complexity, a spokesperson for ownership said.
Weill Cornell is growing across New York, Dr. Robert Harrington, the Stephen and Suzanne Weiss Dean of Weill Cornell Medicine and provost for medical affairs of Cornell University, said in a statement.
Weill Cornell Medicine recently expanded into Long Island City, opening a medical practice at 28-25 Jackson Ave. in September 2021 in partnership with NewYork-Presbyterian.
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