NewYork-Presbyterian signs $186.1M refi for housing in Lenox Hill

NewYork-Presbyterian Hospital through the entity Royal Charter Properties-East, Inc. as borrower signed a refi loan with lender NYS Dormitory Authority through the entity Dormitory Authority Of The State Of New York valued at $186.1 million for the 517-unit specialty building (I4), the Helmsley Medical Tower residences, at 505 East 70th Street in Lenox Hill, Manhattan.
The deal closed on March 17, 2025 and was recorded on April 4, 2025. The prior lender was NYS Dormitory Authority which held debt that had an original loan amount of $171.4 million. The property has 595,492 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $312 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for NewYork-Presbyterian Hospital was Michael P. Breslin. The signatory for NYS Dormitory Authority was Portia Lee .

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Kenrick Ou, head officer and Ed Cleveland, officer. The business entities are Cushman & Wakefield, Inc. and Royal Charter Properties East, Inc.

The property

The specialty building with 517 residential units in Lenox Hill has 595,492 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 137 feet deep with a total lot size of 24,956 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $236 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one housing violation and $5,280 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 11, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Lenox Hill, The bulk, or 34 percent of the 53.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 30 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $3.9 billion in sales volume in the last two years. For development, Lenox Hill has 2.7 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 595,492 square feet of the 1,406,599 square feet. The two identified owners are NewYork-Presbyterian Hospital and City Of New York.
There are no active new building construction projects on this tax block.

All properties are specialty.

The borrower

The PincusCo database currently indicates that NewYork-Presbyterian Hospital owned at least three commercial properties in New York City with 6,089,154 square feet and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 97 percent of the 6,089,154 square feet of built space are specialty properties, with industrial properties next occupying 3 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Queens next at 3 percent of the space.

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