Pending regulatory approval, MSKCC says it intends to renovateand convert the Gramercy Park-area property to an outpatient cancercenter. The facility served as a 455-bed hospital until it closedin March 2008 due to financial woes. A state health care commissionin 2006 recommended the closing of Cabrini and four other New YorkCity hospitals.

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"Cabrini spent the last 100 years fulfilling its mission at thislocation, so it's very meaningful that the property will continueto be utilized as a medical facility," says Vincent Carrega,executive managing director of Grubb's capital markets group, in arelease. "It's also exciting to know that this transaction providesan additional location for MSKCC to further its tremendouslyimportant work."

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The complex extends half a city block and is comprised of fourbuildings totaling nearly 400,000 square feet of above-grade area,plus approximately 54,000 square feet of below-grade space. Largestof the buildings is a 17-story purpose built hospital, encompassingnearly 300,000 square feet of gross building area. The remainingthree adjacent buildings are situated on separate lots.

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Carrega and Neil Helman, senior managing director at Grubb,handled the disposition, with participation from Frank Mancini,regional director of special asset services, and David Arena,chairman of the firm's tri-state region. Legal representation forCabrini was provided by its bankruptcy counsel, Frank Oswald ofTogut, Segal & Segal LLP, and its special real estate andhealthcare counsel, Burton Weston of Garfunkle Wild. MSKCC's realestate consultant in the sale was Mark Weiss at Newmark KnightFrank, while legal counsel came from Allan Weider at Paul, Weiss,Rifkind and Wharton.

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When Caritas Healthcare auctioned off itshospital campuses in Queens for $26.25 million last October,Larry Weiss, VP of brokerage services at CB Richard Ellis, toldGlobeSt.com there might be a few more such sales by financiallybesieged healthcare operators. "I would say it's a very smallnumber, but a small number makes a trend," Weiss said at the time."There would potentially be a few in the outer boroughs, a coupleon Long Island and maybe one or two in Manhattan."

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.