NYU Langone Doubles Down at 1 Park

NEW YORK CITY-Two major transactions at One Park Ave. were finalized on Thursday. NYU Langone Medical Center doubled its space at the 20-story office property to more than 360,000 square feet, and the property’s ownership completed a recapitalization for $430 million.

NYU Langone’s 21-year lease consolidates existing space at One Park while meeting new demand for both administrative and clinical office space. The deal adds 180,476 square feet, bringing the medical center’s total footprint to 367,584 square feet, or more than a third of the property’s 933,315-square-foot total.

Cushman & Wakefield’s chairman of global brokerage Bruce Mosler led the team representing NYU Langone, along with vice chairman Josh Kuriloff, executive director Mark Mandell and Michael Rotchford and David Heller of the firm’s investment banking group. Mosler says in a release that One Park remained “the top choice” for the tenant after a search of competitive properties.  “The building is strategically located within walking distance of the medical center’s main campus, and with allowances for future expansion rights, will become a core asset for NYU Langone,” he adds.

The Carlton Group arranged a $430-million recap that included a $180-million equity commitment from Vornado Realty Trust, along with a $250-million mortgage from a major investment bank, according to an industry source familiar with the deal. Vornado is taking a 95% interest in the property, which faced foreclosure. Minority partner Murray Hill Properties will continue managing and leasing the property, the source says. Murray Hill paid $550 million for the property at the market’s peak.

In the NYU Langone lease, Vornado was represented in-house by Glen Weiss, SVP of leasing, and Ronald Lo Russo, VP of leasing. Murray Hill was represented by Norman Sturner, Audrey Novoa and Roxana Girand. A Vornado spokeswoman declined to comment; a call to Murray Hill was not returned by deadline Thursday.