Alexander’s, Inc. has entered into an agreement to sell its long-vacant Rego Park I property to Northwell Health, Inc. for a gross purchase price of $235.5 million. The REIT estimates net proceeds of approximately $202 million from the disposition, reflecting a substantial financial statement gain of about $147 million and a tax gain of roughly $145 million. The property is currently unencumbered, and the transaction remains subject to customary closing conditions. The parties expect the sale to close by the third quarter of 2026.
The asset, known as Rego Park I, is positioned at the intersection of Queens Boulevard and Junction Boulevard, adjacent to the Long Island Expressway in Queens. The site comprises 5.9 acres and is anchored by a vacant, three-story structure offering 338,000 gross leasable square feet that formerly operated as an Alexander’s department store. The property also includes a 1,236-space parking garage, adding to the overall scale of the site and reinforcing its potential for large-format or campus-style uses.
The Rego Park I building dates back to 1959 and has remained unused in recent years, with Alexander’s having fully vacated the structure by relocating tenants to its neighboring Rego Park II shopping center. That move consolidated operations into the adjacent retail complex and left Rego Park I available for disposition. The current sale marks a formal exit from this particular asset while preserving Alexander’s presence in the immediate area through Rego Park II.
Northwell Health’s acquisition will transfer control of a sizable and prominently located property, though future plans for the site have not yet been disclosed. With the property long vacant and now changing hands from a retail-focused REIT to a healthcare operator, the transaction represents a significant repositioning opportunity at a well-trafficked Queens intersection. For Alexander’s, the deal is expected to crystalize a sizable gain on sale and unlock capital from a non-income-producing asset once the transaction closes later in 2026.
