Vital Infrastructure Property Trust, a specialised healthcare infrastructure Real Estate Investment Trust (REIT), has announced the acquisition of the East New York Health Hub at 101 Pennsylvania Avenue in Brooklyn for $89.9 million. The property spans 142,249 square feet and serves as an outpatient care centre, primarily leased to AdvantageCare Physicians New York.
Negotiations were led by an extensive team from Newmark. Ben Appel, Adam Spies, Jay Miele, Justin Shepherd, John Nero, Adam Doneger, Matt Berres, Michael Greeley, Ron Ott, Conor Hilton, and Drew Martin represented both the buyer and seller. The seller is Jonas Rudofsky, owner of Squarefeet.com and a former director at Newmark. Rudofsky had owned the property since 2019, the same year it was first developed, according to property records.
Strategic Expansion in a Key Market
Zach Vaughan, CEO of Vital Infrastructure, stated that the acquisition was an important step in Vital Infrastructure's growth strategy. He emphasised that the East New York Health Hub is a modern, institutional, multidisciplinary healthcare facility in a market with high barriers to entry. The tenancy of one of New York's largest healthcare networks strengthens the resilience and quality of the REIT's portfolio, while expanding its presence in a key US market.
The Newmark team declined to comment. However, Newmark initially identified the tenant as the non-profit insurance company EmblemHealth, while Vital stated that AdvantageCare has 11 years remaining on its lease. In addition to AdvantageCare, other prominent tenants are located in the building, according to the buyer.
- —New York Cancer & Blood Specialists
- —Lenox Hill Radiology
- —New York Health
- —Advanced Dermatology
- —Quest Diagnostics
This transaction underscores the ongoing trend of investment in specialised healthcare facilities, particularly in densely populated urban areas where the demand for accessible medical services is continuously increasing. The long-term nature of the leases and the presence of reputable medical service providers contribute to the stability and attractiveness of the investment.
