Alexander’s, Inc. has finalized the previously announced sale of its Rego Park I property in Queens to Northwell Health, Inc., marking the transfer of a legacy retail asset to a healthcare user. The transaction closed at a gross sales price of $235.5 million. After accounting for transaction-related items, the company reported net proceeds of $203 million from the sale.
In advance of closing, Alexander’s had already funded $21 million of costs tied to the disposition. As a result, the company received $224 million of cash proceeds at the time of closing. Alexander’s has indicated that the transaction will generate an approximate $148 million gain on its financial statements, reflecting the difference between the gross sales price and the property’s carrying value on its books.
Rego Park I consists of a vacant, three-story structure totaling 338,000 gross leasable square feet. The building, originally constructed in 1959, is accompanied by a parking garage with 1,236 spaces. Together, the improvements sit on a 5.9-acre site in Queens. The property has historically functioned as a large-format retail destination, anchored for many years by the Alexander’s department store chain.
The building originally housed what was the only Queens location of the former Alexander’s department store. That chain ultimately filed for bankruptcy in 1992, but the Rego Park I asset continued to operate as a multi-tenant retail property for other users. Over time, the property evolved from its original single-tenant department store configuration into a multi-tenant retail building.
Prior to the sale to Northwell Health, the last two retailers occupying space at Rego Park I were Marshalls and Burlington. Both concepts had operated within the building but were relocated in the prior year to Alexander’s adjacent Rego Park II property. That neighboring asset totals approximately 950,000 square feet and provided the landlord with the ability to move the remaining retailers off the Rego Park I site ahead of the transaction.
With those relocations completed and the building sitting vacant, Alexander’s proceeded to finalize the sale of the Rego Park I property. By completing the disposition, the company has converted a non-income-producing, vacant retail structure and parking facility into a substantial cash inflow while also recognizing a significant gain on its financial statements. The closing transfers control of the 338,000-square-foot building, its 1,236-space parking garage and the underlying 5.9-acre site to Northwell Health.
