RXR, Waterfall Asset Management and New York Life Investment Management are jointly funding a $103 million recapitalisation for Sylvan Corporate Center. This four-building medical office complex, spanning 276,000 square feet, is owned by Andalex Group in Englewood Cliffs, New Jersey.
The new capital will refinance an existing mortgage and support a significant expansion of the current space for the anchor tenant, Englewood Health. The latter has signed a 20-year lease extension and plans to double its footprint to 202,000 square feet, according to a press release. Opened in 1998, the property is currently fully leased.
Long-term Vision and Expansion
Andrew Silverman, Principal at Andalex, whose company acquired Sylvan Corporate Center in 2004 and oversaw the construction of two additional buildings on site by 2008, stated that this recapitalisation, along with Englewood Health's long-term expansion, validates the strength of the property, the quality of its location, and the long-term vision they held for the asset.
Englewood Health currently operates several facilities at Sylvan Corporate Center, including orthopaedics and primary care offices, an Asian Health and Wellness Centre, and an outpatient surgery centre. As part of the planned expansion, the company is expected to develop a 50,000 square foot outpatient imaging and therapy centre, as well as a 50,000 square foot physician practice space.
Russ Young, Head of Investments at RXR, explained that Sylvan Corporate Center represents the type of high-quality, relationship-driven credit investment for which RXR is well-positioned. Englewood Health's credit profile is also notable, as the provider is expected to merge with RWJ Barnabas Health. This merger would create the largest combined healthcare system in the state of New Jersey.
Alexander Silverman, also a Principal at Andalex, described Englewood Health in a statement as an "exceptional institution and ideal long-term partner." He emphasised that their commitment to over 200,000 square feet underscores the strength of the location, the quality of the property, and the growing importance of healthcare as a driver of office demand.
