Northwell Health Buys Rego Park Retail Property for $235.5M

Northwell Health has agreed to acquire the Rego Park I retail property in Queens for $235.5 million from Alexander’s, Inc., the real estate investment trust affiliated with Vornado Realty Trust.

The transaction involves a long-vacant retail building totaling approximately 338,000 square feet along with a 1,236-space parking garage situated on a 5.9-acre site at the intersection of Queens Boulevard and Junction Boulevard.

The sale is expected to close by the third quarter of 2026, subject to customary closing conditions.

Former Department Store Site Changes Hands

The Rego Park I property was previously home to a large department store and most recently housed tenants including Marshalls and Burlington, which relocated to the nearby Rego Park II shopping center approximately a year ago.

After those tenants moved out, the building remained vacant, allowing Alexander’s to market the property for redevelopment or repositioning.

The site occupies a highly visible location along Queens Boulevard near the Long Island Expressway, one of the borough’s busiest commercial corridors.

Strategic Acquisition for Northwell

Northwell Health has not publicly disclosed its exact plans for the property. However, the site sits roughly one mile from Long Island Jewish Forest Hills, suggesting the health system may look to expand its medical footprint in the area.

The acquisition continues Northwell’s steady expansion across the New York metropolitan region. The organization has grown significantly over the past two decades and is now the largest private employer in New York State with more than 100,000 employees.

Financial Impact for Alexander’s

For Alexander’s, the transaction represents a major monetization of a non-income-producing asset.

The company expects to receive approximately $202 million in net cash proceeds from the sale and record an estimated $147 million financial statement gain.

Alexander’s had previously relocated tenants from the property to its adjacent Rego Park II shopping center, which remains an active retail asset in the neighborhood.

Final Thoughts

The Rego Park transaction highlights a growing trend across New York City: large health systems acquiring former retail properties for medical expansion or redevelopment opportunities.

As traditional retail continues to evolve, well-located properties with significant parking and large floor plates are increasingly attractive to healthcare providers seeking to expand outpatient facilities and medical campuses in dense urban neighborhoods.

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