Mount Sinai closes bidding on 4 UWS properties

Mount Sinai closes bidding on 4 UWS properties

The name of the new owner of the former St. Luke’s Roosevelt Hospital Center properties on Morningside Drive is expected to be announced next month. The deal is expected to net $130 million.

Mount Sinai St. Luke’s is one step closer to selling four buildings on its Morningside Heights campus, in a deal that hospital executives had hoped would net about $130 million. Mount Sinai Medical Center, which last year took over management of money-losing St. Luke’s Roosevelt Hospital Center when it merged with Continuum Health Partners and a number of other facilities including Beth Israel Medical Center, closed bidding for the properties last week and hopes to pick a winner within the first quarter.

It is unclear how much the bidders actually offered for the collection of six-story buildings along Morningside Drive between West 113th and West 114th streets, which are used for office space.

“These underutilized buildings were first opened more than a century ago and no longer permit us to offer state-of-the-art care to our patients,” said a Mount Sinai spokesman. “Selling these mostly vacant properties allows us to reinvest in and revitalize the remainder of our Mount Sinai St. Luke’s campus.”
The sale process is already raising some concerns in the community because the properties will almost certainly be revamped for residential use.
“There is a big question of what kind of housing will be developed there,” said City Councilman Mark Levine, D-Manhattan. “There are fears about scale and bulk, as well as whether the end product will be luxury housing that is out of reach for neighborhood residents.”

Two of the buildings are landmarked, but technically the other two could be razed and replaced with larger apartment towers. But whether that would be financially feasible and if air rights could be thrown into the mix are unknown.
Either way, Mr. Levine said, he will advocate for some affordable units to be included on the site because the eventual owner will need to apply for permits to convert it to residential use.

In November, the hospital presented a plan detailing major improvements to be funded by the proceeds from the sale. Among a list of upgrades, it wants to renovate the existing emergency department, construct an urgent care center and create what is known as a medical mall, which will house both a diabetes center and an infusion therapy center, a facility that specializes in providing treatments via intravenous needle.
The hospital also outlined a broader plan for St. Luke’s in the wake of the 2013 merger. The hospital plans to shuffle some current services among other locations and partners, and specialize in operations such as cardiology and cancer care on the St. Luke’s site.

The eventual residential development is just a block north of where the Brodsky Organization is building residential apartments on the site of the Cathedral of St. John the Divine.

 

By Crain’s New York

http://www.crainsnewyork.com/

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