Northwell Health has scooped up a retail center in Queens that has remained vacant for a gross purchase price of $235.5 million. Alexander's, Inc., which sold the property, will receive $202 million in net proceeds.
The deal, subject to customary closing conditions, is expected to be completed by the third quarter.
Known as Rego Park I, the three-story asset is located near the Long Island Expressway, at the intersection of Queens Boulevard and Junction Boulevard. The 338,000 gross leasable square foot offering includes a parking garage with 1,236 spaces.
The plans for Northwell at the property, which was originally built in 1959, are unclear. Alexander's, on the other hand, relocated its tenants from Rego Park I to its nearby Rego Park II shopping center.
"The financial statement gain will be approximately $147 million and the tax gain will be approximately $145 million, of which $48 million was recognized in 2025 and approximately $97 million will be recognized in 2026," Alexander said in a statement following the sale.
Before the sale, Alexander's operated five assets in the greater New York City area, with others including Bloomberg's headquarters, 731 Lexington Avenue in Midtown Manhattan; the Rego Center in Rego Park, Queens and The Alexander in Rego Park, a retail and apartment tower.
Last year looked like a strong one overall for New York's retail sector. Marcus & Millichap estimated that retail vacancy would decline by 10 basis points year-over-year to 3.9 percent in 2025, with asking rents climbing by 3.4 percent (a growth rate above the long-term average) to $64.25 per square foot.
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