A Year Later, Toll Closes on Midtown South Buy

NEW YORK CITY—A year after going into contract, the $135-million sale of United Cerebral Palsy of New York City's former program center at 122 E. 23rd St. has closed. A capital markets team at Avison Young represented the non-profit in identifying the homebuyer, national homebuilder Toll Brothers. Sharon Zimmer, partner at the law firm of Romer Debbas, also represented UCP in the transaction.

The sale of the 60,000 square-foot 122 E. 23rd, which is zoned for 180,000 square feet of residential development, will fund UCP of NYC's program expansions and enhancements, as well as the transfer, build-out and operating costs associated with the nonprofit's relocation to 80 West End Ave. on Manhattan's Upper West Side. A portion of the proceeds from the sale will be transferred to the New York City Foundation for Cerebral Palsy to sustain long-term development. UCP of NY had occupied the property since 1973. 

“With the client intent on moving to a new program center location, it was incumbent to find a buyer that could be flexible with relocation timing and procurement of approvals,” says AY principal Jon Epstein. “The transaction entailed close coordination with all parties involved to ensure a seamless process as United Cerebral Palsy of New York transitions to its new space.” Epstein arranged the sale with his colleagues Vincent Carrega, Neil Helman and Charles Kingsley.

In December 2013, the New York Times and other sources reported that Horsham, PA-based Toll Brothers went into contract on the property. As a nonprofit, UCP of NY needed to receive state approval on the sale of its facility before the deal could close.

A number of nonprofits in the city have realized sizable proceeds in recent years through selling properties for redevelopment. The highest-profile example occurred with last year's $375-million sale of the Watchtower portfolio in Brooklyn to a partnership of RFR and Kushner Cos.