Medical space available.

When tenants play musical units, opportunities become available for others. That's what is happening at 380 Second Avenue, as the Margaret Sanger Clinic of Planned Parenthood gets ready to join its executive offices at a Noho location the year.

That means its clinic space at 380 Second Avenue is now on the market with Earle Altman of Helmsley-Spear, who says it will provide an unusual opportunity for one of the local hospitals to slip into an 18,000 square-foot space already built out for clinic use.

"They could save $2.5 million," said Airman about a new tenant and the kind of installation expenses it would otherwise face should it start with raw space. Clinics need extensive plumbing work for the many sinks, along with cabinetry, air-conditioning and other built-ins, and Planned Parenthood had recently updated its "state-of-the-art" equipment, Altman added.

The property, that has another entrance at 310 East 22nd Street, is a 10-story, 198,000 square-foot building that already houses many large medical institutions and schools.

Coincidentally, a new medicaid reimbursement schedule was just finalized in an agreement with the State and Federal government and will call for hospitals to send some patients to affiliated clinics. The pact was crafted with the help of Derails Rivera, the head of the powerful Local 1199 of the Hospital & Health Care Employees Union, and will retain worker jobs by shifting them to these clinics, so such space will soon be in even greater demand.

The asking rent for the medical clinic is $20 a foot, and Altman says "When we find the tenant that can use it, he won't quibble. What does it matter, because for another dollar he's getting an installation that is worth a fortune."

Altman has just begun marketing the Planned Parenthood space to area hospitals that include Beth Israel and the Hospital for Special Surgery, NYU and Cabrini, and is also approaching the nearby Police Academy.

When the clinic was first constructed back in 1973, they started the build-out "on a handshake" and Altman asked the non-profit how it would fund the work. They provided him with the names of the Ford and Rockefeller foundations. Not only did those prestigious funds vouch for Planned Parenthood, they immediately sent checks to cover all the work.

At that time, and even today, many owners are afraid to permit a clinic that provides abortions along with other counseling and medical services - to become tenants at their properties.

The first Margaret Sanger Clinic was opened in 1916 in Brownsville, recalled her grandson, Andrew Sanger, who is the current president of Planned Parenthood. "It was closed down immediately by the police," he said.

But Margaret E. Sanger reopened the clinic in 1923 on 16th Street in Manhattan, and when Planned Parenthood merged with them in 1973, moved the clinic to its current 380 Second Avenue location.

Sanger says the group began searching for a new home in 1986 that could house both its executive offices and medical clinic. As the real estate market strengthened, however, they could not find anything suitable for both.

About five and a half years ago, they moved only the executive offices to 26 Bleecker Street at the corner of Mott Street.

"As it turns out, it is now suitable for both," said Sanger, noting that the building is right by the Broadway/Lafayette subway stop and is easily accessible to the patients that may work in Manhattan, but live in Brooklyn, Queens, The Bronx and Manhattan.

"We [originally] left the clinic at 380 Second Avenue because [at that time] the ownership was not ready to put the clinic here, but we always believed it would be more advantageous for our patients to have our Manhattan operations all in one place," Sanger explained.

Space on the lower floors of the seven-story 26 Bleecker Street recently came available, and with the blessing of the ownership, is now being turned into a clinic with a goal of a December move-in.

The clinic will occupy the 6,000 square-foot first and second floors, along with the slightly smaller basement. That compares nicely with the 17,500 square feet currently inhabited at 380 Second.

Morgan Contracting is handling the construction work and Sanger says their movein goal is December.

While the not-for-profit could benefit immediately from owning its own building and obtaining an exemption from city real estate taxes, Sanger says they have a long-term lease with an option to buy the building that kicks-in in the year 2000.

"While we fully intend to buy, we can't do it yet," he noted, "but there is a rental savings" because of the less desirable area.

Altman says while the clinic had a "reasonable rent," real estate taxes alone can run $3 a foot, and for 18,000 square feet, could total $360,000 a year. "That's why non-profits should buy," he suggested.

And for those seeking "bargain basement" space, along with the polished Planned Parenthood clinic, Altman also has available a raw, 14,500 square-foot windowed basement that has its own staired street entrance which can be ramped or be fitted with a lift if necessary, and can be had for $12.50 a foot.