LAKE SUCCESS, NY -- The North Shore-LIJ Health System will expand beyond the 440,000 square feet of clinical space it owns and occupies at 1111 Marcus Avenue in Lake Success, as part of a $113.7 million purchase of a 940,000-square-foot condominium unit by Waterstone Development that was finalized Dec. 17. Through a new 30-year lease agreement with Waterstone, North Shore-LIJ will own all 1.4 million square feet of the complex at the end of the lease term in 2045.
The 940,000-square-foot condo unit had been in foreclosure since early this year and is currently home to Hain Celestial, Dealertrack, North Shore-LIJ's Human Resources Department (20,000 square feet) and other tenants.
The health system, which is changing its name to Northwell Health in January, will increase its presence in the condo unit over time to approximately 700,000 square feet, with rights to occupy the full complex as existing tenants leave. It will use the additional space for clinical, administrative, laboratory and educational purposes.
“This transaction reflects the health system’s ongoing commitment to serving this community, ensures steady stewardship of a large and important facility, and secures North Shore-LIJ’s future in this area,” said Phil Silverman, senior vice president and chief physical assets officer at the health system.
, In March 2015, North Shore-LIJ purchased the 440,000 square feet it has occupied for the past decade from Ares Management. It houses the health system's Center for Advanced Medicine (CFAM) , the largest outpatient care complex in the New York metropolitan area. CFAM is home to the:
-- Monter Cancer Center
-- North Shore-LIJ Ambulatory Surgery Center
-- Arthur Smith Institute for Urology
-- Mitchell A. Goldman, MD, Diagnostic Imaging Center
-- Bohlsen Women's Imaging Center
-- Department of Radiation Medicine
-- Bioskills Education Center
North Shore-LIJ and Waterstone worked collaboratively to execute the latest transaction, which included a long due-diligence period and public approvals process with the Village of Lake Success to allow for occupancy of the property. North Shore-LIJ was represented by its in-house Physical Assets group. Winthrop Management will continue to manage the property for Waterstone.
"1111 Marcus is a strategically located asset for North Shore-LIJ," said Joel Papo, vice president of real estate strategy at the health system. "Securing the right to grow into spaces over time, and eventually own the entire property, will allow us to provide world-class space for our world-class care, while at the same time reduce occupancy costs."
About North Shore-LIJ Health System -- North Shore-LIJ is changing its name to Northwell Health in January 2016.
One of the nation's largest health systems, the health system 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. The health system cares for people at every stage of life at 21 hospitals and about 450 outpatient physician practices throughout the region. The health system’s owned hospitals and long-term care facilities house more than 6,600 beds, employ more than 15,000 nurses and have affiliations with nearly 13,600 physicians. With a workforce of more than 61,000, the health system is the largest private employer in New York State. For more information, go to www.northshorelij.com