Northwell Health Acquires Rego Park I Retail Building in Queens for $235.5M

Northwell Health has agreed to acquire the vacant Rego Park I retail building at 96-05 Queens Boulevard in Queens, New York, from Real Estate Investment Trust (REIT) Alexander's Inc. for $235.5 million, according to an announcement from ABS Partners Real Estate. The deal is expected to close by the third quarter of 2026.

Alexander's Inc., which is managed by Vornado Realty Trust, signed a Memorandum of Contract on March 6, 2026, for the property situated at the intersection of Junction Boulevard and Queens Boulevard, adjacent to the Long Island Expressway. The unencumbered sale is expected to generate net proceeds of $202 million for Alexander's, with a financial statement gain of approximately $147 million and a tax gain of approximately $145 million — of which $48 million was recognized in 2025 and approximately $97 million will be recognized in 2026.

Property Overview

The Rego Park I building is a three-story, 338,000-square-foot structure spanning 5.9 acres and includes a parking garage with 1,236 spaces. Built in 1959, the property originally served as the sole Queens location of the Alexander's department store chain, which at its peak operated 16 stores in 1981 before filing for bankruptcy in 1992.

At the time of the sale, the property was fully vacant. Its last two retail tenants — Marshalls and Burlington — had relocated to Alexander's adjacent 950,000-square-foot Rego Park II property, which opened in 2010. Marshalls departed in May 2025 and Burlington followed in September 2025, leaving Rego Park I unoccupied ahead of the transaction.

Deal Financials and Alexander's Inc. Balance Sheet Impact

The $235.5 million sale price equates to approximately $697 per square foot based on the building's 338,000 square feet of space. According to Alexander's press release, the property is being sold unencumbered, and the net proceeds of $202 million reflect the gross sale price less transaction-related costs.

The financial statement gain of approximately $147 million and the tax gain of approximately $145 million reflect the value Alexander's accumulated in the asset. The tax gain is being recognized across two fiscal years: $48 million in 2025 and approximately $97 million in 2026, consistent with the deal's expected closing timeline in the third quarter of 2026, subject to customary closing conditions.

Northwell Health's Acquisition

Northwell Health's intended use of the Rego Park I property was not disclosed in the source materials. The transaction is subject to customary closing conditions ahead of its anticipated third-quarter 2026 close.

ABS Partners Real Estate reported the transaction.