RXR and Partners Finance $103 Million Medical Campus Recapitalization

• RXR, Waterfall Asset Management and New York Life Investment Management are financing a $103 million recapitalization of Sylvan Corporate Center in Englewood Cliffs, New Jersey.
• The financing will refinance an existing mortgage and support a major expansion for anchor tenant Englewood Health.
• Englewood Health signed a 20-year lease extension and plans to double its footprint to approximately 202,000 square feet.
• The four-building medical office campus spans 276,000 square feet and is fully leased.
• Andalex Group has owned and managed Sylvan Corporate Center since acquiring the property in 2004.

What the $103 Million Recapitalization Will Support

RXR, Waterfall Asset Management and New York Life Investment Management are financing a $103 million recapitalization of Sylvan Corporate Center, a four-building medical office campus in Englewood Cliffs. The new capital will refinance the property’s existing mortgage and support a major expansion for Englewood Health, the campus’s anchor tenant. The transaction provides long-term financing for a fully leased medical office property while creating additional capacity for outpatient care, physician practices and specialized healthcare services.

“This recapitalization, together with Englewood Health’s long-term expansion, validates the strength of the asset, the quality of the location and the long-term vision we have had for the property,” Andalex Principal Andrew Silverman said.

What Englewood Health Plans for the Campus

Englewood Health has signed a 20-year lease extension and plans to double its presence at Sylvan Corporate Center to approximately 202,000 square feet. The healthcare provider currently operates orthopedic and primary care offices, an Asian health and wellness center, and an ambulatory surgery center across the campus. As part of the expansion, Englewood Health is expected to develop a 50,000-square-foot outpatient imaging and therapeutics center. Plans also include approximately 50,000 square feet of additional physician office space. The expansion will significantly increase Englewood Health’s presence at the 276,000-square-foot campus and strengthen the property’s role as a regional destination for outpatient medical services.

What Sylvan Corporate Center Includes

Sylvan Corporate Center is a four-building medical office campus that opened in 1998. The property spans approximately 276,000 square feet and is currently 100% leased. Andalex Group acquired the campus in 2004 and has managed the property for more than two decades. The firm later expanded the center by constructing two additional buildings, completing the additions by 2008. The campus now supports a range of medical uses, including physician offices, wellness services, outpatient care and ambulatory surgery.

What the Long-Term Lease Means for the Property

Englewood Health’s 20-year lease extension provides long-term tenant stability while supporting continued investment in the campus. The healthcare provider’s planned expansion to more than 200,000 square feet will make it the dominant occupant at Sylvan Corporate Center and reinforce healthcare’s growing role as a driver of office demand.

“Their commitment to more than 200,000 square feet underscores the strength of the location, the quality of the asset, and the growing importance of healthcare as a driver of office demand,” Andalex Principal Alexander Silverman said.

Englewood Health is also expected to merge with RWJBarnabas Health. The proposed transaction would create the largest combined healthcare system in New Jersey and could further strengthen the tenant’s long-term position.

What the Deal Shows About Medical Office Demand

The recapitalization highlights continued lender and investor interest in medical office properties backed by established healthcare providers and long-term lease commitments. Medical office campuses can offer different demand drivers than traditional office properties because healthcare tenants often require specialized facilities and make significant investments in their spaces. Outpatient services and physician practices can also benefit from consistent patient demand and longer occupancy periods. Sylvan Corporate Center combines full occupancy, a major healthcare tenant, specialized medical uses and a long-term expansion plan. Those factors helped support the $103 million recapitalization while positioning the campus for continued growth.