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NY Hospital leases 75,000 sf at converted UPS warehouse.

NY Hospital leases 75,000 sf at converted UPS warehouse

In one of the biggest office leasing transactions of the year, New York Hospital has taken more than 75,000 square feet of office space, the entire second and seventh floors, at 333 East 38th Street in Manhattan.

The lease marks a significant achievement for the 436,000-square-foot structure, which was recently transformed from an outdated warehouse/distribution center into a first-class office building by its owner, S L Green Real Estate Inc. Except for a portion of its retail space, which features ground floor loading with direct car or truck access, 333 East 38th Street is now 100 percent leased.

New York Hospital will relocate its billing and accounting departments from offices in its York Avenue facility and consolidate its computer systems, which are now housed at two Manhattan locations, into its new facilities by the summer of '92.

Peter J. Berman and Eric Marks of Julien J. Studley represented New York Hospital in the long-term real estate transaction while Stephen L. Green, chairman, Richard M. Warshauer, executive vice president, and Benjamin P. Feldman, senior vice president and general counsel for S L Green Real Estate, represented the building's ownership. The lease calls for an aggregate rental of approximately $28 million.

Virtually empty and in less than peak condition when it was acquired by S L Green in 1988, the building, once a main warehouse and distribution center for United Parcel Service, has been totally overhauled. It now features a distinctive marble lobby highlighted by a commissioned sculpture by artist Michael Glancy; all-new mechanical systems, including HVAC, electrical and water; thermalpane windows; a state-of-the-art microprocessor-controlled elevator system and restored limestone facade. The multimillion dollar project was performed by 5. L. Green's in-house construction department headed by Nancy Ann Peck, the company's corporate president.

Perhaps even more impressive, considering the state of the marketplace, is that 333 East 38th Street was able to quickly fill its offices with prestigious tenants such as Kallir, Phillips, Ross, a division of Omnicom; UNICEF; The U.S. Committee for UNICEF; and Newbridge Communications Inc., formerly Macmillan Book Clubs.

"In one of the toughest real estate markets New York City has ever seen, we were able to turn an outmoded warehouse into a truly desirable office building," asserted Green, who noted that the building was able to command average rentals in the high $20s. "By adding value to the property rather than waiting for time and inflation to improve its ability to produce income, we accomplished what many in the industry thought was impossible."
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:square feet, United Parcel Service
Publication:Real Estate Weekly
Date:Jun 5, 1991
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