Year in Real Estate
Joseph Chetrit is in contract to purchase the 1.5-acre former Cabrini Medical Center site at Second Avenue and East 19th Street, The Wall Street Journal reported today.
The Chetrit Group and its partners have agreed to pay more than $150 million for the five-building complex owned by Memorial Sloan-Kettering, sources familiar with the deal confirmed with The Commercial Observer.
The Journal noted that Mr. Chetrit is purchasing the property with the same group of investors that he bought the Sony Building with, which included David Bistricer and put the man at the helm of Clipper Equities on the map among commercial real estate’s elite.
The city’s aging population, a drive for state-of-the-art facilities and strong hiring across the health care industry prompted unprecedented growth in leasing activity in the health care sector across the five boroughs in 2012.
Memorial Sloan-Kettering, Mt. Sinai, Montefiore Hospital and Inventa Health were among the dozens of hospitals and medical companies to announce bold new initiatives to expand their footprints in the city in 2012, and those developments are only a sign of what’s to come, brokers and analysts predict.
The economy is dithering and demand for space in the Midtown and Downtown office markets has not been sturdy enough to absorb new product–like 4 World Trade Center and 55 W. 46th Street– according to commercial real estate brokerage firm Studley’s The overall availability rate in Manhattan rose by 0.4 percent to 11.1 percent, the report says. Class A availability in submarkets have also been affected by market malaise. In the Plaza District, which had an availability rate of 8.5 percent in third quarter of 2011, now has an availability rate of 11.1 percent. Midtown’s availability for Class A space rose to 11.62 percent, its highest mark since the first quarter of 2011.
Downtown’s availability rate did not fare any better. It jumped up by 2.14 percentage points to 12.01 percent, with impending vacancies at the World Financial Center and the delivery of 4 World Trade Center to the marketplace affecting the overall rate.