NYU Lutheran is expanding in Sunset Park, Brooklyn, near the Brooklyn Army Terminal.
The hospital, which was acquired by NYU Langone on Jan. 1, paid $12.1 million in an off-market deal for 32,000 square feet at 5718 Second Ave. in Brooklyn, which is down the street from the hospital and Lutheran’s Sunset Park Family Health Center.
“NYU became aggressive because they saw that it was right [near] the hospital,” said Bob Klein, a broker with KDA, who represented both buyer and seller in the deal, with broker Jeffrey Unger. “They needed the building for future growth.”
The hospital paid $378 per square foot. Klein said that was “a bit above market” but NYU Lutheran acted quickly because the property wasn’t yet listed. The two sides went direct to closing, skipping a contract, following some due diligence.
“We sort of created that sale by pushing that owner to listen to an offer,” Klein said. “If it hit the market, there may have been some competition.”
A spokesman for NYU Lutheran said it plans to use the space primarily for patient care.
“The new building is part of NYU Langone’s master planning efforts to relocate, modernize and grow ambulatory services and programs affiliated with NYU Lutheran,” he said in a statement.
The seller was an LLC affiliated with Benjamin Maintenance, which has a 12,500-square-foot warehouse on the ground floor and second-floor offices. There also is a 7,000-square-foot mezzanine level.
Last year, NYU Lutheran leased 29,000 square feet at Industry City in Brooklyn for administrative offices.
NYU Lutheran is made up of a 450-bed hospital; a network of clinics and social services; the Lutheran Augustana Center for Extended Care and Rehabilitation; a home-care agency; and three senior-housing complexes.