LaSalle and William Macklowe Company Complete Joint Venture Acquisition of Medical Office Development Site in Manhattan’s Hospital Row
CHICAGO AND NEW YORK (May 08, 2018) — LaSalle Investment Management (“LaSalle”) and William Macklowe Company (“WMC”) announced that they have entered into a joint venture to develop a new six-story medical office building located at 323 East 61st Street on Manhattan’s Upper East Side. WMC, the venture’s operating partner, will also act as developer of the project. LaSalle entered into this venture through its U.S. core open-end real estate fund, LaSalle Property Fund (“LPF”).
Situated in what is commonly referred to as “Hospital Row,” the development location contains some of the world’s most prestigious hospitals, medical schools, research centers and outpatient facilities, including New York-Presbyterian Weill Cornell Medical Center, Weill Cornell Medical College, Memorial Sloan Kettering Cancer Center, Hospital for Special Surgery and Rockefeller University. The new 75,000-square-foot medical facility will replace the existing structure, and meet the area’s strong demand for purpose-built clinical, research and administrative space.
Jim Garvey, Portfolio Manager for LaSalle Property Fund, commented: “323 East 61st Street is an exceptional fit for our portfolio, enabling LPF to increase its exposure to class A medical office in a New York City neighborhood that is both supply constrained and has a high-demand for medical office.”
Billy Macklowe, CEO of William Macklowe Company, commented: “323 East 61st Street provides New York City’s world-renowned healthcare institutions the opportunity to expand their footprint with a brand-new state-of-the art facility located right in the epicentre of this campus community. Our prior experience in this submarket allowed us to capitalize on this opportunity.”
Richard Reese Managing Director of Acquisitions at LaSalle, added: “This property fits well with LaSalle’s strategic focus on medical office acquisitions, offering long-term stability in a thriving location. The Upper East Side of Manhattan is a densely populated area with a robust pool of demand drivers. In addition, the medical facilities in the area are also able to boost demand well beyond the immediate neighborhood, creating the need for additional supply.”
Steve Bolen, Managing Director and U.S. Sector Head for Medical Office at LaSalle, commented: “Healthcare delivery in the U.S. is increasingly shifting to outpatient settings such as medical office buildings. This project represents the rare opportunity for prominent healthcare providers to deliver care to patients on the Upper East Side in a modern, Class A, purpose-built medical office facility."
About LaSalle Property Fund
LPF invests in and manages a diversified portfolio of high quality, stabilized real estate and real estate-related assets in the industrial, multifamily, office and retail sectors in top markets across the United States. Drawing from LaSalle Investment Management, Inc.’s 35-year record of accomplishment of core real estate investment on behalf of sophisticated institutional investors, LPF aims to provide attractive risk-adjusted income returns with the potential for superior long-term capital growth through an investment process and platform that leverages LaSalle’s industry-leading market research.
About William Macklowe Company
WMC has significant experience developing, owning and managing high-end commercial and residential real estate properties in New York City. Led by William “Billy” Macklowe, WMC has owned 400 Madison Avenue, 610 Broadway, 636 Avenue of the Americas, 156 William Street, 311 West 43rd Street and 21 East 12th Street. Prior to founding WMC in 2010, Mr. Macklowe was the President of Macklowe Properties, which over a period of 40 years initiated the development and investment of commercial and residential real estate transactions encompassing more than 25 million square feet and valued in excess of $15 billion.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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