NYU Langone in Talks for 40K SF at Essex Crossing
By Terence Cullen August 31, 2015 1:39 pm
reprints
NYU Langone Medical Center is eyeing a new facility at the massive, 1.9-million-square-foot Essex Crossing development on the Lower East Side, as the developers behind the project eye more construction start dates.
The hospital has been in ongoing talks to sign a lease at Site 6 of the multi-parcel project, a spokesman for developer Delancey Street Associates—the joint venture made up of Taconic Investment Partners, L+M Development Partners and BFC Partners—told Commercial Observer.
Langone originally announced last week that the Joan H. and Preston Robert Tisch Medical Center would open in 40,000 square feet at the site covering three floors, according to The Lo-Down, a blog that covers the neighborhood. The press release making the announcement was then pulled from the Internet after the story posted.
The new facility would be an extension of the Preston Robert Tisch Center for Men’s Health, according to the blog post, which is located in Midtown at 555 Madison Avenue between East 55th and East 56th Streets. The new center would serve both men and women, host about two dozen doctors and have services ranging from primary care to plastic surgery to sports medicine, according to a portion of the release pasted into The Lo-Down’s blog post.
Site 6 sits at the corner of Delancey and Clinton Streets. It includes 100 apartment units, all of which the joint venture is securing for senior housing. Construction is slated to start sometime this fall, according to the developer, once financing is secured for that specific project.
Work on Site 6 is expected to be followed up with construction on Site 1, which Delancey Street Associates plans to secure financing for by the end of the fall or the start of the winter. That features 55 condominium units, of which 11 will be affordable. Retail space at the parcel, at the corner of Broome and Ludlow Streets, will feature bowling alley Splitsville Luxury Lanes in 17,000 square feet.
Construction on a few portions of the project kicked off in July. Delancey Street Associates secured $250 million worth of construction financing to begin work on two portions of the project, as CO previously reported. Wells Fargo provided a $109 million construction loan for work at Site 5—a project featuring 66,000 square feet of retail space and 211 units, half of which will be affordable. Citibank provided a $144 million loan for construction at Site 2, which is made up of 195 rental apartments and retail space for the relocated home of the 75-year-old Essex Street Market.
The nine-site project will eventually create 1,000 housing units, of which half will be affordable, according to the joint venture. The project was projected to cost $1.1 billion when the city announced Taconic, L+M and BFC as the developers in September 2013.
“It was just a very thoughtful plan—that took 48 years, granted, but I think they got it right,” Ron Moelis, the chief executive officer and founding partner of L+M, told CO in an interview earlier this summer.
