Newmark has been exclusively retained to offer for sale the 100% fee simple interest in 175 Delancey Street (the “Property” or the “Offering”), a ~55,000 rentable square foot ambulatory care facility that was purpose built for NYU Langone in 2019. The Property spans three levels (cellar to the second floor) and is located at the base of the new construction, mixed-use tower, “The Goldin” which is a part of the Essex Crossing Lower East Side complex.

The Offering is currently 100% leased to the ‘Joan H. & Preston Robert Tisch Center at Essex Crossing’ department of NYU Langone. NYU Langone is the preeminent medical center of New York City and one of the most highly sought after tenants. NYU occupies 18,126 SF in the cellar, 11,383 SF on the first floor, and the entire 25,868 SF on the second floor of the condominium. Notably, Moody’s recently upgraded their NYU Langone Hospital’s credit rating to A1 and S&P Global Ratings has assigned them an A+ rating since 2022.

There are 9 years of WALT remaining on the NYU lease (LXD: 1/31/34) with one 5-year extension option which includes a 100% fair market value rent reset and 2.25% annual increases thereafter. The lease has over $46 million in contractual revenue remaining with 2.25% annual rent increases and a 12% increase following 2029. NYU Langone reimburses 100% of tax increases over a 2019/2020 base year amount. Further, NYU reimburses 100% of the water expense for the condominium and pays direct for gas and electric.

Given its location within the Essex Crossing super complex, the Offering directly benefits from the thousands of tenants, office workers, diners, shoppers and more that visit Essex Crossing on a daily basis. The nearly 2 million square foot complex has created a new Lower East Side epicenter by adding over 1,000 new residents, 350,000 square feet of office space and 300,000 square feet of commercial space to the neighborhood. The 175 Delancey location offers NYU Langone employees and clients alike easy access to multiple transportation lines as it sits just a few blocks east of the F, M, J and Z subway lines and west of the entrance to the FDR Drive.

All inquires should be directed to Newmark.