A growing list of New York city nonprofits--including a long list of hospitals--are cashing in on the region's booming real estate market. Many own property in neighborhoods that have gone from questionable to trendy, pumping up the value of their holdings dramatically. These locations are particularly desirable to residential developers, who are fighting tooth and nail for these properties as they come onto the market.
Some hospitals divesting themselves of long-held properties. For example, Mount Sinai Hospital and Mount Sinai School of Medicine are selling a 15-story, 120,042 square-foot pre-war apartment building, along with 315,000 square feet of adjacent transferable development rights to create a tower. Developers will be able to build a 32-story residential condo development on the spot, complete with Central Park views. Meanwhile, some financially-troubled hospitals, such as the city's Brooklyn Hospital and St. Vincent's, are using proceeds from such transactions to save themselves from going under. Still others are capitalizing on the trends of the moment. Lenox Hill Hospital, for example, is selling much of its campus to the Manhattan Eye, Ear and Throat Hospital. The sale is expected to command a high price.
To learn more about how nonprofit real estate deals:
- read this piece from The New York Sun