MANHASSET, NY—North Shore LIJ has acquired the600 Community Drive office building here form a partnership led byNew York City-based Carlton Group Chairman Howard L.Michaels for a record-shattering price of $65 million.

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The 252,000-square-foot property sold for an effective purchaseprice of $260-per-square-foot. North Shore LIJ had been a subtenantat the property, which is within walking distance of the Northshore LIJ campus, for the past eight years.

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The Carlton Group in its sales announcement states that NorthShore LIJ played "possum" showing no interest in buying or leasingspace in the building until the building's master lease held byUnited Business Media was set to expire on October 31st of thisyear. Talks between North Shore LIJ and the building ownershipbegan months prior to the expiration.

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Carlton Group chairman Michaels and his principal transactionteam petitioned the Village of North Hills and eventually securedzoning approval to lease approximately 80,000 square feet of thebuilding for medical office use. This was a huge victory for the600 partnership as medical office rents proximate to North ShoreLIJ Hospital are significantly higher than typical office rents,Carlton Group states.

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Michaels also engaged a local architect who developed arenovation plan for the building that included interiorimprovements and a new facade entrance. Michaels was also able torenew two key leases in the building, including one with NorthShore LIJ earlier this year. Michaels then hired RichardTravaglini, a leasing specialist who had worked for thelast 10 years at Mack Cali Realty. Travaglini, working withMichaels and others on the Carlton Strategic Ventures assetmanagement team, developed a solid pipeline of new tenant activitythat would have allowed the partnership to operate the building asa successful multi-tenanted building.

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Based on those developments, North Shore LIJ realized theyneeded to make a deal to acquire the building in order to preventthe property from being a multi-tenanted building for years tocome, Carlton Group states in its announcement.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.