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Deals & Dealmakers

Kaufman signs 98,000 s/f hospital deal

The William Kaufman Organization (WKO) has completed a 98,600 s/f direct office lease with the Hospital for Special Surgery (HSS) at 777 Third Avenue in Midtown East.

The direct lease commences in July 2026 after the expiration of the sublease with Avon and includes the 2nd through 5th floors. With the new lease, HSS will move some of its non-medical administrative and general business offices into the building.

HSS will benefit from a recently-completed multi-million-dollar renovation at the property, which included the restoration of the lobby’s original Italian Calacatta marble, new elevator cabs and state-of-the-art technology, safety and emergency systems, as well as access to the main campus of HSS offered by the proximity of the FDR Drive, Grand Central Terminal and major subway lines.

The 38-story, 575,985 s/f class A office tower is located on the full blockfront between 48th and 49th Streets.
Michael I. Lenchner, vice president and director of leasing of Sage Realty Corporation, the leasing and management division of WKO, represented building ownership in the transaction, while Brian Given and Sheena Gobil of Colliers International, represented the tenant. Asking rents were in the $70s per square foot range.

“We are pleased that HSS has chosen 777 Third Avenue for additional administrative offices,” Lenchner said. “This significant transaction further demonstrates the strength of the Third Avenue corridor, the desirability of our building and the ongoing resurgence of Midtown East as a world-class business district.”

“As HSS continues to expand, this new space in Midtown East will house certain non-medical staff to further allow us to strategically support clinical growth at our main campus,” said Stacey Malakoff, chief financial officer at HSS.
777 Third Avenue features two iconic sculptures in the plaza area: the “Big Red Swing,” an interactive pop-art sculpture by artist Theodore Ceraldi and “Contrappunto,” a rotating stainless-steel sculpture at the front entrance by Brooklyn-based artist Beverly Pepper.

777 Third Avenue is co-owned in partnership with The Travelers Companies, Inc. Major tenants include Starboard Value LP, Sompo America Insurance Services LLC Hudson Bay Capital Management, LP, an employee investment manager; SEI Investments Company, a publicly-traded investment management firm; and ERG Property Advisors, a commercial real estate firm. Retail tenants include HSBC Bank and LensCrafters.

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