Manhasset, NY – The North Shore-LIJ Health System today announced that it has executed a 32-year lease with Waterstone Development Group for 600 Community Drive in Manhasset, NY, located on nine acres adjacent to the 58-acre North Shore University Hospital.
Unlike most leases, however, the entire 252,000 square-foot building will be gifted to North Shore-LIJ at the conclusion of the 30-year lease. The health system currently occupies about 55,000 square feet of administrative office space at 600 Community Drive. As part of the new agreement, the health system will begin to increase the space it occupies in the building over the coming years.
The building was purchased by the Waterstone Development for about $59 million – a price that is approximately equal to the mortgage debt on the property – from The Carlton Group. As part of the transaction, Waterstone will invest $44 million to upgrade and modernize the building. Rent on the renovated building will be competitive with what landlords are charging for comparable space in the area.
Philip Silverman, senior vice president and chief physical assets officer, explained that this transaction is part of a strategy designed to help North Shore-LIJ to move away from market rate leases and toward opportunities where North Shore-LIJ is rewarded for the quality of its tenancy with lower occupancy costs and long-term ownership.
“This transaction provides direct benefits to North Shore-LIJ, our patients, their family members and the entire community,” said Mr. Silverman, who developed and negotiated the transactions. “We are able to secure additional space and capital needed to expand our clinical programs while simultaneously lowering our occupancy costs and providing for eventual ownership of these strategic properties.”
About North Shore-LIJ Health System
One of the nation's largest health systems, North Shore-LIJ delivers world-class clinical care throughout the New York metropolitan area, pioneering research at The Feinstein Institute for Medical Research, a visionary approach to medical education highlighted by the Hofstra North Shore-LIJ School of Medicine, and healthcare coverage to individuals, families and businesses through the CareConnect Insurance Co. Inc. North Shore-LIJ cares for people at every stage of life at 19 hospitals and more than 400 outpatient physician practices throughout the region. North Shore-LIJ’s owned hospitals and long-term care facilities house more than 6,400 beds, employ nearly 11,000 nurses and have affiliations with about 10,000 physicians. With a workforce of about 54,000, North Shore-LIJ is the largest private employer in New York State. For more information, go to www.northshorelij.com