Maimonides Consolidating Brooklyn Offices to 54K SF in Borough Park

Maimonides Medical Center continues to make its Brooklyn facilities more efficient after signing a 54,000-square-foot deal to consolidate its administrative offices.

Maimonides signed a 30-year leasehold agreement for space in a newly constructed office condominium at 5402 Fort Hamilton Parkway in Borough Park, according to the broker on the deal. The building is owned by Menachem Markovics’ Royal Builders Development.

“This is a consolidation of all of their back offices to put it under one roof and give everybody an upgraded, better quality space,” Locations Commercial Real Estate’s Nick Zweig, who represented both the landlord and tenant in the deal, told Commercial Observer.

The Real Deal first reported the transaction.

Asking rent in the seven-story building was well above $50 per square foot, a premium compared to most spaces in Brooklyn where office stock is not as high-end, Zweig said.

“For older stock [in Brooklyn], I would say it could range anywhere, let’s say from $35 to $45 a foot depending on what level you’re in within that market,” he said.

Maimonides’ new building also offers a rooftop terrace and 10,000 square feet of underground parking, as well as ground-floor retail space controlled by Maimonides, which will likely be leased to a food service establishment, according to Zweig.

The deal follows another consolidation for the health system announced last week: a 25,000-square-foot deal at ​​809 Atlantic Avenue in Clinton Hill where Maimonides will relocate a primary care facility from 26 Court Street as well as provide surgical and OB/GYN services.

Mark Hallum can be reached at mhallum@commercialobserver.com.