In a 2011 letter to the Office of the Manhattan Borough President, Mount Sinai officials said by changing the building’s address to incorporate its proximity to Fifth Avenue, officials would be able to secure higher rents to help the medical school and health system survive federal budget cuts and declining reimbursements, the report states.
“A key indicator to successful residential developments is the address,” wrote Donald Scanlon, CFO and chief of corporate services at New York City-based Mount Sinai Health System, according to The Wall Street Journal. “The marketing of a ‘Fifth Avenue’ address will exponentially affect the leasing rate and the overall revenue performance of this development. This project’s success and cash flow are critical to the success of Mount Sinai and its economic viability.”
The Manhattan borough president’s office approved the change in address in December 2011 on the condition a sign be posted on the building’s exterior wall providing directions to its Fifth Avenue entrance.
The Leon and Norma Hess Center and adjacent apartment complex officially opened in December 2012. The center houses The Friedman Brain Institute and The Icahn Institute for Genomics and Multiscale Biology, among other departments. The apartment complex houses 229 residential units, with 20 percent of the units (46 apartments) reserved as affordable housing.
Recent monthly rents for the apartment units ranged from $4,600 per month for a one-bedroom unit to $12,000 per month for a three-bedroom unit, according to The Wall Street Journal.
Editor’s note: Becker’s Hospital Review reached out to the Icahn School of Medicine at Mount Sinai for comment and will update the article as more information becomes available.
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