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Memorial Sloan Kettering scoops up piece of Lipstick Building

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The rebounding Manhattan office market has once again acquired a potent drug.

Memorial Sloan Kettering Cancer Center will buy more than half of Lipstick Bill from owner SL Green for about $300 million, The Post learned.

Amazing deals may be the most “out of the box” deals in the evolving commercial scene. Touro College leases majority of Three Times Square in January.

That’s good news for Midtown, where traditional tenants in finance and law have either shrunk their footprints or moved to the Far West Side and downtown. But as The Post reported, the overall Manhattan market saw its biggest lease volume in August since December 2019.

MSK’s commitment of 414,317 square feet is a condo purchase, not a lease. But when the sale is completed by the end of the year, it will have the same effect as removing a large block of office space from Manhattan’s “available” category.

The deal seemed to come suddenly. No word of the negotiations leaked from either side, but it’s remarkable for such a large deal in a high-profile location.

The hospital plans to use the floor for research and administrative offices.
William Farrington of the NY Post

Memorial Sloan Kettering does not plan to move its beds to the tower at 885 Third Ave., East 53rd Street, but will use that floor for research and administrative offices. This reflects the tendency of medical institutions to gobble up space away from traditional hospital campuses sprawling along York Avenue on the Upper East Side.

SL Green will continue to own the remaining 218,796 square feet of Lipstick Tower, nearly 92% of which is leased, according to sources. After assuming full management of the tower in 2020, the landlord, who had been interested since 2007, began relocating the tower with new state-of-the-art facilities and infrastructure.

Newmark’s team represented SL Green and Memorial Sloan Kettering.

SL Green, the city’s largest commercial landlord, owns 64 buildings totaling 34.4 million square feet. Its flagship properties include One Vanderbilt, One Madison Avenue, 1185 and 1350 Sixth Ave., and 280 Park Ave.

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