December 10, 2014
North Shore-LIJ to Move its Headquarters in 2015
by KEN SCHACHTER AND VICTOR OCASIO
North Shore-Long Island Jewish Health System is moving its headquarters to a 112,000-square-foot, three-story leased site on Marcus Avenue in Lake Success in 2015, officials said Wednesday.
"We've really outgrown the space here," North Shore-LIJ spokesman Terence Lynam said of the health care system's current space at 125 and 145 Community Dr. in Great Neck, which is a single three-story building with two addresses.
About 500 people will move to the new headquarters at 2000 Marcus Ave. under the 33-year lease. Occupancy is expected by mid-2015, Lynam said. Among the units moving to the vacant building will be communications, operations, legal, fundraising, strategic planning, managed care, business development and senior executives.
Lynam said the lease was signed in November 2013, but details related to reconfiguring the space and resettling employees had stretched on for months.
The office building, previously owned and occupied by Astoria Bank, has remained vacant since it was bought by Lake Success-based developer Lalezarian Properties in 2011. Since the purchase, the property has undergone "substantial overall" upgrades, company principal Kevin Lalezarian said.
"Heads of various departments have been working with our designers about what the specific space would look like," Lynam said. "You go floor by floor with the planners."
The hospital system includes 19 hospitals on Long Island, in New York City and its northern suburbs and employs 54,000 people, making it the largest private employer in New York State.
The move is in line with North Shore-LIJ's "frugal" approach to office space, said Phil Silverman, the system's senior vice president and chief physical assets officer. Favorable rent terms allow the not-for-profit to "reduce costs so we can deploy more money into patient care," he said.
North Shore-LIJ also recently signed a 30-year lease-to-own agreement with Massachusetts-based Waterstone Development, the new owner of a 252,000-square-foot office property at 600 Community Dr. The developer plans to invest about $44 million in building improvements.
The health system plans to use about a third of that building for clinical space and the remainder for administrative functions, Silverman said. At the end of the lease period, the health system would own that property.
North Shore-LIJ will retain its current headquarters building, which also houses a kidney dialysis unit and sleep medicine center.
Long Island Business News
December 10, 2014
North Shore-LIJ Moving Headquarters to Lake Success
By: Claude Solnik
The North Shore-LIJ Health System, the state’s biggest private employer, is moving its headquarters from Community Drive in Great Neck to 2000 Marcus Ave. in Lake Success. The move is expected to occur early next year.
The system, which has been expanding by adding hospitals, signed a 30-plus year lease with Great Neck-based Lalezarian Properties for the 112,000-square-foot, vacant structure. The building is being retrofitted for North Shore-LIJ, which employs roughly 51,000 people, including upgrades to elevators and bathrooms.
“It’s a great location,” said Phil Silverman, the system’s senior vice president and chief physical assets officer. “It’s at the center of our world between our two tertiary campuses and across from our ambulatory campus. It’s directly off the exit and entry to the Northern [State] Parkway.”
Silverman said the building was the right size and could be obtained “on favorable economic terms.”
“It’s a larger space,” Silverman continued. “It enables us to fit more of our corporate offices in one location. Right now, they’re spread across multiple buildings.”
The headquarters will be the home to roughly 500 staffers, including the executive and corporate offices, legal, public relations, marketing and some key strategic functions.
North Shore-LIJ executives such as CEO Michael Dowling, COO Mark Solazzo, CFO Robert Shapiro as well as the chief legal officer and senior vice president of strategic planning and their staffs will make the move.
“We are not seen as a health system that spends a lot of money on the glamor of corporate environment,” Silverman said. “The same will be true here. These will be good, functioning offices, not glamorous.”
He described the lease as “cost-efficient,” giving the system an ideal location at a good price in part because the space is so large.
“We were able to procure the building on extremely favorable terms for a very long-term lease,” Silverman continued. “We took advantage of a building that had been sitting vacant for a long time.”
The organization won’t be vacating 125 and 145 Community Drive, where various clinical offices including the dialysis program and sleep centers, medical records and back-office administrative functions will remain.
“We had truly outgrown the space and we had other space in the area that we had outgrown where leases came due,” Silverman added. “I think our big picture is we want to deliver quality healthcare. And we want to do it with the lowest overhead we can achieve at the corporate level.”