Planned Parenthood Sells Only Manhattan Clinic to Izaki Group for $38M

Planned Parenthood of Greater New York has officially sold its only Manhattan clinic for $38.1 million, after first putting it up for sale in March, Commercial Observer has learned.

The nonprofit, which provides sexual and reproductive health care services and education, offloaded its seven-story, 43,365-square-foot Manhattan Health Center at 26 Bleecker Street in NoHo to Izaki Group Investments (IGI), which has plans to convert the vacant property into luxury residential condos, according to broker Cushman & Wakefield.

“We were pleased to bring 26 Bleecker Street to market and identify a buyer with a clear vision for this unique asset,” C&W’s Craig Waggner, who represented the seller in the deal, said in a statement. “Its corner exposure, efficient floor plates and abundant natural light make it an exceptional candidate for residential conversion in one of Manhattan’s most sought-after neighborhoods.”

C&W’s Waggner, Bobby Carrozzo, John Ciraulo, Carri Lyon and David Lebenstein brokered the deal for the seller and procured the buyer. Spokespeople for Planned Parenthood and IGI did not immediately respond to requests for comment.

The sale of the facility — which required state approval — comes after Planned Parenthood put the 1900-built property up for sale in the spring for $39 million, largely because the “outdated facility [was] not designed to support the health care needs of the future,” the nonprofit said in a statement at the time. The sale also came after Planned Parenthood suffered mounting financial and political pressures.

“Our commitment to our patients is at the heart of our mission to provide equitable access to sexual and reproductive health care and education,” Wendy Stark, president and CEO of Planned Parenthood NY, said in a statement in March.

“The gap between inflation and stagnant reimbursement rates has forced us to make difficult but necessary decisions, including selling 26 Bleecker Street, home of the Manhattan Health Center,” Stark added. “Funds from the sale will allow us to sustain services for systemically underserved communities — the people who need us most.”

Stark added at the time that the nonprofit might build a new “state-of-the-art health center in Manhattan,” but selling 26 Bleecker was the “first step.”

Now, IGI will turn the building on the corner of Bleecker and Mott streets into luxury condos, as the property’s zoning permits “a range of residential and commercial uses,” C&W said.

“We saw exceptional engagement from residential developers, users, retailers and boutique office investors,” C&W’s Carrozzo said in a statement.

The sale of 26 Bleecker leaves Planned Parenthood with no locations in Manhattan at a time when the future of reproductive rights is uncertain. The health care provider has also been forced to shut down at least four other clinics in New York state within the past year due to declining visits and financial problems.

Meanwhile, news of 26 Bleecker’s conversion also comes during a wave of planned office-to-residential conversion projects in Manhattan. Office-to-resi conversion starts in 2025 totaled 4.1 million square feet as of August, with an additional 8.8 million square feet of projects proposed for post-2025, according to data from C&W.

Isabelle Durso can be reached at idurso@commercialobserver.com.