The Georgetown Company has signed a 165,000 s/f long-term lease with Mount Sinai’s Icahn School of Medicine at its new life science hub at 787 11th Avenue on the Far West Side.
The developer is also creating a 36,000 s/f research facility for scientist and inventor Neri Oxman which will render the redeveloped property fully occupied.
“The pioneering work these scientists and physicians perform cannot be done remotely over Zoom,” said Georgetown Company managing principal Jonathan Schmerin.
“We believe that we are only scratching the surface of the demand for life science space given the strength of our medical institutions and the talent pool in this area and we look forward to expanding our presence given our portfolio on the West Side.”
Georgetown acquired 787 11th Avenue for $255 million in 2015 in partnership with Bill Ackman, founder and CEO of Pershing Square Capital Management, and other investors including Arnold Schwarzenegger, LeBron James and Jimmy Iovine.
The company tapped architect Rafael Viñoly to redesign the building and secured $410 million in financing for the venture. Several major leases were also signed with Regus co-working affiliate, Spaces, taking 99,000 s/f and automotive dealerships Jaguar Land Rover and Nissan/Infiniti taking the ground level space. Other tenants included Dwight Capital and Pershing Square Capital.
Georgetown has not commented on previous lease deals at the property, but confirmed it has secured $100 million in financing from Guggenheim Investments for construction of the Mount Sinai space that will be completed in conjunction with Mount Sinai by 2024.
The $100 million renovation already carried out “anticipated and incorporated many of the technological and infrastructure requirements to accommodate life science tenants,” said Georgetown in a press release announcing the two new tenants.
“Additionally, the building’s oversized, 60,000 s/f floor plates and generous ceiling heights (which can easily accommodate specialized laboratory and mechanical equipment), along with abundant natural light across the entire perimeter of the building, make 787 11th Avenue the ideal location to create one of the largest life science campuses in New York City.”
Mount Sinai will occupy three floors in the building with a facility that will include a research focus on genome sequencing and genomic development technology as well as three patient-focused centers: Spine Center and Breast Center; Comprehensive Imaging Center; and a state-of-the-art ambulatory surgery center.
Oxman is building a new 36,000 s/f facility that will be used for a research and design practice which seeks to foster systemic changes in the built environment by realigning methods of design and production with the natural world. Her lab will research, design and implement inventions to address complex challenges across product, architectural, urban and planetary scales.
Dennis S. Charney, M.D., Anne and Joel Ehrenkranz Dean of Icahn School of Medicine, and president of Academic Affairs at Mount Sinai Health System, said, “The investments we are making in research and medical infrastructure will enable us to provide best in class care for our patients while pushing the boundaries of medicine and science to find solutions for our greatest health challenges. The building represents our continued commitment to transform care and health care delivery in key areas of neurosciences, cancer, immunology and orthopedics.”
A JLL team of Peter Riguardi and Steven Rotter partnered with the Georgetown Company and Rob Martin and Barbara Winter represented Mount Sinai in the transaction. The Vinson & Elkins legal team led by Adam Endick and Wally Schwartz advised and collaborated with Georgetown’s General Counsel and principal Michael Busch on the lease and TI financing structuring and documentation. Russell Schildkraut of Ackman Ziff helped secure the TI financing.
The 165,000 s/f long-term lease with Mount Sinai is one of the largest leases signed since the beginning of last year.