MJHS Health System Signs Big Lease in Lower Manhattan

55 Water St.

Not-for-profit MJHS Health System is the newest tenant at New Water Street Corp.’s 55 Water St. tower in Lower Manhattan. CBRE arranged the 138,374-square-foot, 30-year commitment, which, according to the brokerage, marks the largest new lease signed in Lower Manhattan in the past year and a half.

The tenant will occupy the 46th and 47th stories of the 3.6 million-square-foot high-rise near the East River waterfront. The 53-story 55 Water St. tower dates back to the 1970s. According to Dan Palino, COO at New Water Street, the property is more than 95 percent leased and maintained a high occupancy throughout the pandemic.

The tenant chose the new downtown location due to its high security and large floorplates, among other factors, which ultimately allowed the company to trim its footprint by 20 percent, David Wagner, president & CEO of MJHS, said in a prepared statement. One of the largest not-for-profit health systems in the region, MJHS will continue to operate its Brooklyn premises at 6323 7th Ave.

The current owner of 55 Water St. is a subsidiary of Retirement Systems of Alabama, which purchased the property in 1993 for $202 million, according to CommercialEdge. The building’s varied tenant roster includes EmblemHealth, NYC Health + Hospitals, McGraw Hill Financial, Hugo Boss City, as well as the New York Department of Transportation.

The CBRE team representing the landlord included Howard Fiddle, Brad Gerla, Even Haskell and Mary Ann Tighe, while Chris Mansfield, Harly Stevens and Zach Weil arranged the deal for MJHS.

Downtown Manhattan’s Leasing Volume Struggles

The Financial District, Plaza District and Times Square – Hell’s Kitchen have been the submarkets with the highest vacancies in the past two years. According to CommercialEdge data, the Financial District registered a 16.0 percent vacancy in February.

Last October, the young tech company Orchard Technologies Inc. also committed to the Financial District at L&L Holding Co.’s 195 Broadway with a 107,443-square-foot lease. The tenant will gather its nearly 200 New York-based employees under one roof at the landmark tower.

Last November, Silverstein Properties chalked up a 52,000-square-foot lease at its 120 Broadway property, also in the Financial District. Bark signed a 15-year commitment at the 1.9 million-square-foot, 40-story high-rise building.