The NYU Grossman School of Medicine purchased a Kips Bay apartment building for $210 million on Aug. 30, the university’s largest acquisition of the year so far. The 209-unit luxury complex, known as The Lanthian, is near other NYU Langone Health buildings, including Tisch Hospital.
“NYU Langone has acquired and intends to operate the property as a strategic mixed-use asset, given its close proximity to the Manhattan main campus,” NYU Langone spokesperson Steve Ritea said in a statement. “We intend to utilize the residential units to house faculty, staff and trainees.”
Since 1998, NYU Langone has leased a substantial amount of space in the property, and retained a presence despite multiple ownership changes in intervening years, according to Ritea. Along with leasing the parking garage and several residential units, the university used the building’s commercial space for admissions and physician offices.
NYU Langone currently maintains leased units in other neighborhood buildings for faculty housing, and hopes to use the new acquisition to decrease its reliance on external property.
The Lanthian apartments were previously owned by California-based real estate company Verbena Road Holdings, which initially sought $170 million for the building. Under the terms of the deal, NYU was allowed to assume Verbena’s existing mortgage, which has a lower interest rate than newly-issued mortgages. The practice has become more common in recent years as a method of bypassing high interest rates intended to curb COVID-related inflation.
Like the university as a whole, NYU Langone and Grossman have expanded their facilities in recent years. This summer, NYU debuted two facilities in Brooklyn, increasing its footprint in the borough by 169,500 square feet. NYU Langone also added services at its hospital in Palm Beach, Florida, initially established in 2017, to capitalize on the city’s growing population.
Contact Tori Morales at [email protected].
