The North Shore-LIJ Health System has finalized a deal to eventually more than double its presence in a Lake Success office building.
As reported in November, a 30-year, $113.7 million lease-to-own agreement with Massachusetts-based Waterstone Development will let the health-care conglomerate expand into 700,000 square feet of a building the I-Park office complex at 1111 Marcus Ave.
“This transaction reflects the health system’s ongoing commitment to serving this community, ensures steady stewardship of a large and important facility, and secures North Shore-LIJ’s future in this area,” said Phil Silverman, the health system’s senior vice president and chief physical assets officer, in a statement.
In the deal finalized Dec. 17, Waterstone has bought the 940,000-square-foot condo unit in the complex and will lease it to North Shore-LIJ and other tenants until the health system takes ownership of the building in 2045.
North Shore-LIJ will then own all 1.4 million square feet of the complex in a “prime location” across the street from its Long Island Jewish Medical Center, spokesman Terry Lynam said.
It already operates its Center for Advanced Medicine, a major outpatient care facility, out of the other 440,000 square-foot-unit, which it bought in March. The deal to purchase the larger building had been in the works since it went into foreclosure early this year.
The deal comes with plans for the health system to expand its outpatient resources as that sector of the health-care industry grows, Lynam said in November.
North Shore-LIJ will eventually open additional clinical, laboratory and conference space in the I-Park building as current tenants leave, he said Wednesday. But there’s not yet a timeline for those expansions because they require significant funding and planning.
“We’re a big organization, but when you’re investing that kind of money in building out that property, … it has to be staggered over time,” Lynam said. “We do it as we can afford to do it.”
The I-Park complex is home to notable North Shore companies Hain Celestial and Dealertrack Technologies, which is building a new headquarters in North Hills.
North Shore-LIJ’s human resources office also occupies 20,000 square feet of space there.
The health system closed a similar deal with Waterstone about a year ago, when the developer paid $59 million a 252,000-square-foot office building at 600 Community Drive in Manhasset, less than a quarter-mile from North Shore University Hospital, for $59 million.
After a 32-year lease period, North Shore-LIJ will take over the building, where it rents administrative offices and plans to open clinical space in the building.
