TF Cornerstone Inks Deal With New Health Startup for Carnegie Hall Tower
Like many commercial real estate owners, TF Cornerstone decided to entice its office tenants back to work at Carnegie Hall Tower by bringing in a clinic that can do COVID-19 testing and vaccination—with a twist. The landlord inked a short-term lease with a new startup called Reside Health, which will offer primary care medical services and wellness consulting to building tenants in its first location.
The clinic will occupy 2,500 square feet on the sixth floor of the 60-story Carnegie Hall Tower, according to Jake Elghanayan, a principal at TFC. The Spector Group-designed space will include standard clinic rooms, but it will be designed with wood-paneled walls, rounded corners, an upholstered bench seat set into the wall, and a few midcentury modern furnishings and fixtures.
The look is doctor’s-office-meets-spa. It’s expected to open in September.
Besides typical primary and urgent care services, Reside will offer behavioral therapy, nutritional counseling and acupuncture. The firm will even advise companies in the building on how to make their spaces more COVID-resistant.
Elghanayan explained that employers can get access to Reside’s “premium” services—like acupuncture, therapy and wellness consulting—for a fixed monthly fee. Otherwise, the company will provide those primary care services. Reside accepts most major insurance, and also has a truck that pulls up outside the building to provide coronavirus testing.
The real estate exec didn’t want to elaborate on the exact details of TFC’s deal with Reside. However, Elghanayan did say that the firm “pays a percentage rent up to a cap, and it caps below market. It gives them flexibility to know they only owe occupancy costs [that are] variable with their business. They aren’t paying regular occupancy costs like a typical office tenant.”
Typical office asking rents in the Plaza District tower at 152 West 57th Street range from $65 to $120 a square foot.
Although TFC could have gone with a more established walk-in clinic operator or concierge medical service, Elghanayan felt that taking a chance on Reside was worth it. “There doesn’t seem to be anyone offering this combination of services, where you get easy access to a primary care doctor and wellness amenities in such an efficient box,” he explained.
He added that Reside was backed by AlleyCorp, a major venture capital firm in New York City with a track record of funding successful startups.
TFC has also undertaken other upgrades in the 550,000-square-foot building during the pandemic, including a new location for flex-space provider Industrious on the 41st floor with an outdoor deck and a conference center as well as a golf simulator on the sixth floor. The landlord also improved the property’s lobby and elevators.