Extell Development Company announced that it will build the first prime Class-A medical office building on Manhattan’s Upper East Side at 403 East 79th St. The 30-story, 400,000-square-foot building will be a state-of-the-art facility to meet the 21st century needs of the healthcare industry.
The building’s anchor tenant will be Hospital for Special Surgery (HSS). Ranked No. 1 in the nation for Orthopedics for the past 12 years and best in the northeast for rheumatology by U.S. News & World Report, HSS has signed a long-term lease for approximately 200,000 square feet of space spread across the first eight floors. The space will be filled with HSS physician offices and ancillary services for treatment of musculoskeletal conditions, which affect one out of every two people over the age of 18.
“As the population ages and in anticipation of increased life expectancy, several medical expansions and redevelopments are already underway on the Upper East Side; however, the current medical office inventory is not equipped to meet the modern tenant’s needs,” said Gary Barnett, chairman and founder of Extell Development Company. “403 East 79th St. will provide a much-needed new facility to complement the area’s growth. We are pleased to be partnering with HSS, the foremost hospital for orthopedics and rheumatology to anchor the base of the building.”
The full block site, located on the east side of First Avenue from 79th Street to 80th Street, consists of 10 different parcels that took Extell over a decade to assemble. With the site fully entitled and cleared, the company anticipates breaking ground at the end of first quarter 2022 with completion slated for early 2025.
Designed by New York-based Perkins Eastman Architects, the mixed-use building will feature the latest in modern, user-centered design, infrastructure and technological specifications. In addition to oversized windows that will offer expansive views and an abundance of natural light, the building will incorporate post-COVID-19 enhancements and specific healthcare solutions, including increased ventilation and enhanced filtration throughout the building. There will also be accommodations for both Department of Health (DOH) and Article 28 requirements for uses such as an Ambulatory Care and Surgical Facilities.
Avison Young President and Managing Director of New York City Operations Mitti Liebersohn and Principal and Tri-State Chairman Arthur Mirante represented HSS in the negotiations in collaboration with the hospital’s in-house team of Michael Calabrese, Stephen Bell and Stacey Malakoff. Extell was represented in-house in addition to Avison Young Principal Vincent Carrega.
