Northwell Health pays $247.6M in planned sale to University Financing Foundation for dev site in Lenox Hill

Northwell Health through the entity Lenox Hill Hospital paid $247.6 million to University Financing Foundation through the entity 3rd Avenue Blockfront LLC for the mixed-use building (K2) at 1329-1347 Third Avenue in Lenox Hill, Manhattan.

On the lot, there is one active new building construction project for a 207,131 square-foot office (B) building. The project was submitted by Vic Clements with plans filed October 3, 2022 and it has not been permitted yet.
The deal closed on March 30, 2023 and was recorded on April 6, 2023.
The University Financing Foundation bought the property on August 3, 2018, for $163.6 million. The signatory for University Financing Foundation was Kevin T. Byrne. The signatory for Northwell Health was Michele L. Cusack.

The property

The mixed-use building in Lenox Hill has 6,130 square feet of built space and 179,803 square feet of additional air rights for a total buildable of 185,940 square feet according to a PincusCo analysis of city data. The parcel has frontage of 204 feet and is 105 feet deep with a total lot size of 18,594 square feet. The lot is irregular. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $10 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 $3,530 in OATH penalties in the last year.

The neighborhood

In Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the 2nd highest sale turnover among other neighborhoods in the city with $3.8 billion in sales volume in the last two years. For development, Lenox Hill has 2.9 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3 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 10 of the 23 commercial properties representing 192,119 square feet of the 356,167 square feet. The largest owner is Ted Cannavo, followed by Parkoff Organization and then Palin Enterprises.
On the tax block, there was one new building construction project filed totaling 207,131 square feet. It is a two-unit, 207,131 square-foot business (B) building submitted by Vic Clements with plans filed October 3, 2022 and permitted March 20, 2023.

The majority, or 55 percent of the 356,167 square feet of built space are elevator buildings, with walkup buildings next occupying 32 percent of the space.

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