LaSalle and William Macklowe Company Secure Lease for 333 E. 61st Street Medical Office Building in Manhattan
CHICAGO AND NEW YORK (January 31, 2019) — LaSalle Investment Management (“LaSalle”) and William Macklowe Company (“WMC”) announced that they have completed a long-term lease agreement with Memorial Sloan Kettering for 100% of the approximately 75,000 square feet of space at 333 E. 61st Street, a new six-story medical office building located in Manhattan’s Upper East Side.
In March of 2018, LaSalle acquired a majority interest in the property through a joint venture with WMC on behalf of its U.S. core open-end real estate fund, LaSalle Property Fund (“LPF”).
Steve Bolen, Managing Director and U.S. Sector Head for Medical Office at LaSalle, commented: “We are pleased to have Memorial Sloan Kettering Cancer Center, a world leader in the diagnosis and treatment of cancer, as the entire-building tenant at 333 East 61st Street. This project represents a continuation of our successful healthcare real estate partnership with the William Macklowe Company, a leading owner/developer of commercial, healthcare and residential properties in New York City.”
Billy Macklowe, CEO of William Macklowe Company, commented: “We are thrilled to meet the deep demand for high quality medical facilities in one of the most supply constrained sub-markets in the country, and be aligned with a world class institution such as Memorial Sloan Kettering Cancer Center. 333 East 61st Street follows our successful conversion of 156 William Street into lower Manhattan’s premier dedicated medical office building and continues our co-investing relationship with LaSalle Investment Management.”
Jim Garvey, Portfolio Manager for LaSalle Property Fund, commented: “333 East 61st Street is an exceptional fit for our portfolio, enabling LPF to increase its exposure to class A medical office in top markets. This investment directly aligns with our strategy of owning well-located core assets that offer stable cash flows and upside potential.”
Situated in what is commonly referred to as “Hospital Row,” the immediate trade area 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.
Since 2001, LaSalle has completed over 90 medical office building investments, representing 6.5 million square feet and a GAV of $2.25 billion, across three dedicated MOB funds, as well investments in its diversified commingled funds and separate accounts.
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
William Macklowe Company (WMC) is a privately owned, vertically integrated real estate investment platform focused on high quality assets and value creation lead by William Macklowe. WMC, and its principal’s activity at its predecessor firm, have accounted for over $15 billion in real estate transactions as a prolific owner, manager, acquirer and developer of prime Manhattan properties over the past 20 years.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages approximately $64 billion of assets in private and public real estate property and debt investments as of Q4 2018. 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. For more information please visit http://www.lasalle.com, and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.