June 14, 2023 9:00 AM
Newmark, in partnership with Extell Development Company, announces the firm has been named the exclusive leasing agent for the renowned developer’s ground-up medical office property, 1520 First Avenue. The 435,000-square-foot, 30-story, mixed-use tower will be the first privately built medical office building developed on the Upper East Side, bringing state-of-the-art facilities to this prime corridor. Newmark’s Executive Managing Directors Justin DiMare and Jonathan Fanuzzi are the exclusive leasing agents for the asset.
Centrally located in the Upper East Side, 1520 First Avenue is among a medical cluster of six of the world’s most prestigious hospitals and biological and medical research centers. The institutions’ headquarters and campuses on The Upper East Side occupy a combined 19.5 million square feet across sixty buildings with an average age of 20+ years. Over the past thirteen years, these medical-focused assets have increased their footprint by approximately 4.9 million square feet (377,000 square feet per annum).
“The current medical office inventory in the city is not equipped to meet the modern needs of today’s healthcare industry,” said Gary Barnett, Founder and Chairman of Extell Development Company. “Medical institutions are growing at a rapid pace and are creating an immediate need for more space. We saw this as an opportunity to bring the superior level of quality and craftsmanship found at all Extell properties to this new state-of-the-art medical facility.”
1520 First Avenue occupies the full-easterly block front on First Avenue from East 79th Street to East 80th Street in the heart of the Upper East Side. In the fall of 2021, Extell announced that the Hospital for Special Surgery (HSS), the world’s leading academic medical center focused on musculoskeletal health, would serve as the anchor tenant of the asset. HSS signed a 195,580-square-foot lease for an outpatient facility on floors 2 – 8. The property’s remaining floors, 9 – 29, will offer a total area of approximately 226,160 square feet, with floor plates ranging from 21,000 square feet in the midrise to 6,200 square feet on the tower floors. The site’s large footprint allows for mostly column-free spaces permitting maximum flexibility for tenant buildouts and future improvements. The property will also include prime retail space on the ground and lower levels.
Designed by New York-based Perkins Eastman Architects, the mixed-use building will set a new medical office and research space standard. The project will feature the latest in modern, user-centered design, infrastructure and technological specifications. In addition to oversized windows offering expansive views and abundant natural light, the building will incorporate post-pandemic enhancements and specific healthcare solutions, including increased ventilation and enhanced filtration. There will also be accommodations for the Department of Health (DOH) and Article 28 requirements for uses such as Ambulatory Care and Surgical Facilities. Additional property highlights include 13’ - 15’ ceiling heights, multiple outdoor terraces, a high-performance façade and mechanical systems to enhance comfort and energy efficiency. Foundation completion and vertical construction are on schedule to occur in Q3 of this year, with project completion targeted for Q2 2025.
“1520 First Avenue was meticulously designed to meet the modern medical program requirements that only new construction can supply. The building’s large rectangular footprint along the avenue allows for an efficient floorplate size that is rarely available,” said DiMare. “This prime UES location in one of the strongest medical office submarkets in the country, combined with Extell’s expertise, will foster the growth of the city’s forward-thinking institutions and their local partners,” said Fanuzzi.
About Extell Development Company
Founded and headed by Gary Barnett, Extell Development Company is a nationally acclaimed real estate developer of residential, commercial, retail, hospitality, and mixed-use properties, operating primarily in Manhattan and other premier cities across the nation. In collaboration with world-class architects and design professionals, Extell creates properties distinguished by sophisticated design, gracious floor plans and first-class amenities.
Commercial and hospitality developments include the recently opened Hard Rock Hotel New York; the International Gem Tower; W Times Square Hotel; Boston’s InterContinental Hotel and Residences; Hyatt Times Square; The acclaimed flagship Park Hyatt New York hotel located at the base of One57, the record-breaking glass tower that pioneered development on Billionaires’ Row; and Nordstrom’s flagship Manhattan store, located at the base of Central Park Tower, the tallest residential building in the world.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $2.7 billion for the year ending December 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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