Developer Lands $44M for Manhattan MOB Project

Affiliates of Park-It Mgmt Inc. have obtained a $44 million loan for the construction of 160 West 124th Street in Manhattan, N.Y., an 89,000-square-foot, build-to-suit medical office development for Mount Sinai Health System.

JP Morgan Chase provided the floating-rate financing and Cushman & Wakefield negotiated the deal on behalf of the borrower.

Designed by E4H Architecture, the 12-story project represents the redevelopment of an existing four-story parking structure dating back to 1910, according to PropertyShark information. The developer had acquired the asset in 2012 for $5.1 million from Nexgen Realty and received building permits for the new structure in 2018. Delivery is slated for the fourth quarter of 2022.

CommercialEdge data shows only two other medical office buildings totaling nearly 465,000 square feet were underway in Manhattan as of May. The largest development is the 403,000-square-foot Hunter College Science and Health Professions Building, a 16-story property rising at 524 E. 74th St. in Upper East Side.

A Central Harlem redevelopment

Construction is underway at 160 W. 124th St., on the south side of 124th Street, between Adam Clayton Powell Jr. Boulevard and Malcom X Boulevard. Upon completion, the facility will serve as a wellness center and will be home to Mount Sinai’s Icahn School of Medicine. In March, Mt. Sinai’s medical school signed a 165,000-square-foot lease in Manhattan’s Far West Side.

The property is situated in Central Harlem, some 2 miles from downtown Manhattan. The location is easily accessible through public transportation, having convenient access to 10 subway lines, 20 bus routes and the Harlem-125th Street Metro North station.

Cushman & Wakefield’s Gideon Gil, Preston Flammang and Alex Lapidus were part of the equity, debt & structured finance team representing Park-It Mgmt. In April, Gil and Lapidus arranged a $52 million loan for the refinancing of a 267,000-square-foot office property in Queens, N.Y., which also includes 71,930 square feet of medical space.