LaSalle Investment Management and William Macklowe Company have signed a long-term office lease agreement with Memorial Sloan Kettering for a new six-story medical office building located in Manhattan’s Upper East Side.
The building is consists of 75,000 square feet of office space at 333 E. 61st Street,
Steve Bolen, Managing Director and U.S. Sector Head for Medical Office at LaSalle, commented: “We are pleased to have Memorial Sloan Kettering Cancer Center, a world leader in the diagnosis and treatment of cancer, as the entire-building tenant at 333 East 61st Street. This project represents a continuation of our successful healthcare real estate partnership with the William Macklowe Company, a leading owner/developer of commercial, healthcare and residential properties in New York City.”
Manhattan’s medical office building
Billy Macklowe, CEO of William Macklowe Company, commented: “We are thrilled to meet the deep demand for high quality medical facilities in one of the most supply constrained sub-markets in the country, and be aligned with a world class institution such as Memorial Sloan Kettering Cancer Center. 333 East 61st Street follows our successful conversion of 156 William Street into lower Manhattan’s premier dedicated medical office building and continues our co-investing relationship with LaSalle Investment Management.”
Jim Garvey, Portfolio Manager for LaSalle Property Fund, commented: “333 East 61st Street is an exceptional fit for our portfolio, enabling LPF to increase its exposure to class A medical office in top markets. This investment directly aligns with our strategy of owning well-located core assets that offer stable cash flows and upside potential.”
Situated in what is commonly referred to as “Hospital Row,” the immediate trade area contains some of the world’s most prestigious hospitals, medical schools, research centers and outpatient facilities, including New York-Presbyterian Weill Cornell Medical Center, Weill Cornell Medical College, Memorial Sloan Kettering Cancer Center, Hospital for Special Surgery and Rockefeller University. The new 75,000-square-foot medical facility will replace the existing structure, and meet the area’s strong demand for purpose-built clinical, research and administrative space.
Since 2001, LaSalle has completed over 90 medical office building investments, representing 6.5 million square feet and a GAV of $2.25 billion, across three dedicated MOB funds, as well investments in its diversified commingled funds and separate accounts.