Northwell Health Acquires 338K-SF Queens Retail Center for $235M
Steven Roth’s REIT Alexander’s sold the empty retail space after more than 30 years of ownership
By Brian Pascus March 9, 2026 4:39 pm
reprints
Northwell Health has acquired a vacant retail site in a move that could point toward a retrofit.
Northwell Health paid $235.5 million to Alexander’s, a real estate investment trust (REIT) owned by Vornado CEO Steven Roth, to acquire Rego Park I, an unencumbered, 338,000-square-foot retail center that had previously been home to discount department stores Burlington and Marshalls and includes a garage with 1,236- parking spaces.
The deal is expected to net Roth proceeds of $202 million and an after-tax gain of $145 million, with his REIT collecting $48 million from last year’s operations and $97 million this year, according to a release.
Sitting on 6 acres of land at the intersection of Queens Boulevard and Junction Boulevard, and near the Long Island Expressway, Rego Park I opened in 1959 and stands three stories tall.
Roth acquired the retail property around 31 years ago, following a battle for majority control with President Donald Trump, as Trump owned 27 percent of the retailer’s shares, compared to Roth’s 29 percent. However, Trump had his shares seized by lenders and sold to Roth in 1995 after he defaulted on property loans tied to his hotels and casinos, according to Crain’s New York Business.
The building is now completely empty. Prior to the sale, Alexander’s relocated all tenants and employees to the nearby Rego Park II shopping center, a 605,000-square-foot open-air shopping center.
It’s unclear what the new owner plans to do with the property. Northwell Health is New York state’s largest health care provider and private employer, with more than 104,000 employees across 900 outpatient care centers, mainly in New York and Connecticut.
The hospital system told CO in a statement that it views the acquisition of Rego Park I as “a strategic investment.”
“Northwell has a long-standing commitment to ensuring our neighbors and patients across Queens can access world-class health care regardless of their ZIP code or their ability to pay,” the group said. “We’re excited to explore ways this strategic investment can serve more New Yorkers and meet the diverse health care needs of all the communities we serve.”
The sale is expected to close by the third quarter of 2026.
Brian Pascus can be reached at bpascus@commercialobserver.com.
