JP Morgan Chase has led a $242.65m financing package to a consortium of New York City hospitals for the development of the The New York Proton Center — the first proton beam therapy facility in New York State, Real Estate Capital has learned.
Last month the New York City Economic Development Corporation (NYCEDC) announced the sale of a 51,000 sq ft parcel in Manhattan’s East Harlem neighborhood, where specialty healthcare developer Murphy & McManus are building a state-of-the-art cancer treatment center.
Four local hospital purchased the land from the city last month for just $14m, according to city property records, which confirm the loan amount. The loan-to-value on the deal, based on an estimated $300m price tag for the center, works out to nearly 81 percent.
Varian Medical Systems will provide its ProBeam technology system, as well as 10 years of service for approximately $115m. Varian’s international subsidiary in Switzerland has provided $91.5m of the financing, and Goldman Sachs has provided an undisclosed sum.
Plans at the 225 East 126th Street site call for a three-story, 115,000 sq ft property built in partnership with the four local hospitals: Memorial Sloan Kettering Cancer Center, Mount Sinai Health System, Montefiore Health System, and ProHEALTH Medical Management.
The proton beam technology uses targeted radiation that is considered especially effective on pediatric, head and neck, and eye cancers. The NYCEDC noted that the project will “revitalize an underutilized city property to strengthen New York City’s position as a global capital for cutting edge medical care and promote the continued growth of the vital bioscience and healthcare sectors.”
The center expects to treat its first patients in the Spring of 2018.