Northwell's latest Long Island acquisition: $9.5M medical building on South Shore

Northwell Health has acquired a freestanding medical office building in Merrick for $9.5 million, according to brokers who facilitated the sale.

The health system, the largest private employer in the state, bought the 17,700-square-foot property at the corner of Dobson Avenue and Sunrise Highway, adjacent to a residential neighborhood. The sale followed an off-market competitive bidding process, according to Rockville Centre brokerage North Village Realty. 

Northwell’s Orlin & Cohen Orthopedic Group is the property’s sole tenant, North Village and the health system said. The property was sold by Berkeley Capital LLC, and the sale closed on Feb. 10, according to North Village, which represented the seller. 

Officials with Berkeley did not respond to requests for comment Monday. 

The recent purchase gives Northwell, the largest private health care provider in the state, long-term stability on pricing on the building going forward, and contributes to the more than 17 million square feet of real estate the system manages across New York and Connecticut, according to its property development webpage.

“Northwell Health purchased the property as we currently hold [the entirety of the leased space] and intend to stay long term to meet the evolving needs of Long Islanders and the future generations of the community,” Barbara Osborn, deputy chief public relations officer for Northwell, said in an email late last week.

Osborn confirmed no major changes are planned for the property and that the purchase gives the health system more control over property costs.

“This strategic initiative is part of Northwell’s mission to provide access to world-class care to anyone who comes to us for care,” Osborn said.

Northwell had approximately three years left on its previous lease term.

“Healthcare providers today are thinking generationally about their footprint,” Tom Bigansky, managing broker for North Village said in a statement.

“By securing ownership in Merrick, Northwell Health is reinforcing its long-term investment in serving the surrounding South Shore communities,” Bigansky said.