North Shore-Long Island Jewish Health System is moving its headquarters to a 112,000-square-foot, three-story leased site on Marcus Avenue in Lake Success in 2015, officials said Wednesday.
"We've really outgrown the space here," North Shore-LIJ spokesman Terence Lynam said of the health care system's current space at 125 and 145 Community Dr. in Great Neck, which is a single three-story building with two addresses.
About 500 people will move to the new headquarters at 2000 Marcus Ave. under the 33-year lease. Occupancy is expected by mid-2015, Lynam said. Among the units moving to the vacant building will be communications, operations, legal, fundraising, strategic planning, managed care, business development and senior executives.
Lynam said the lease was signed in November 2013, but details related to reconfiguring the space and resettling employees had stretched on for months.
The office building, previously owned and occupied by Astoria Bank, has remained vacant since it was bought by Lake Success-based developer Lalezarian Properties in 2011. Since the purchase, the property has undergone "substantial overall" upgrades, company principal Kevin Lalezarian said.
"Heads of various departments have been working with our designers about what the specific space would look like," Lynam said. "You go floor by floor with the planners."
The hospital system includes 19 hospitals on Long Island, in New York City and its northern suburbs and employs 54,000 people, making it the largest private employer in New York State.
The move is in line with North Shore-LIJ's "frugal" approach to office space, said Phil Silverman, the system's senior vice president and chief physical assets officer. Favorable rent terms allow the not-for-profit to "reduce costs so we can deploy more money into patient care," he said.
North Shore-LIJ also recently signed a 30-year lease-to-own agreement with Massachusetts-based Waterstone Development, the new owner of a 252,000-square-foot office property at 600 Community Dr. The developer plans to invest about $44 million in building improvements.
The health system plans to use about a third of that building for clinical space and the remainder for administrative functions, Silverman said. At the end of the lease period, the health system would own that property.
North Shore-LIJ will retain its current headquarters building, which also houses a kidney dialysis unit and sleep medicine center.