In early January, the Santa Cruz Valley Regional Hospital, once a healthcare facility catering to the local community, was listed for sale. The owner, Broadstone, a New York-based real estate investment trust, cited the hospital as a distraction within its extensive 800-property portfolio.
The Asking Price
The asking price for the closed hospital is open to the best offer, marking the beginning of a new chapter for the property. The move to sell the asset comes two months after Broadstone CEO John D. Moragne expressed concerns about the hospital’s impact on their portfolio during a third-quarter investor phone call on Nov. 2.
Moragne conveyed that efforts were made to explore re-tenanting possibilities and selling the asset. He mentioned the challenges faced by a California group attempting to reopen the hospital in 2023, stating their failure to meet specific milestones outlined in their agreement. Furthermore, Moragne revealed that rent due on Oct. 1 had not been received by Broadstone.
Reopening Efforts and Unawareness
The group leading the endeavor to reopen the hospital in 2023 is headed by Precious Velvet Mayes, the CEO and president of Pacifica Hospital of the Valley in the San Fernando Valley. Michael Choo, the Chief Operations Officer for the group, expressed on Friday night that he was unaware of the hospital being up for sale. Choo asserted ongoing efforts to reopen the facility, emphasizing that he is not responsible for rent payments but ensuring utility bills are covered.
Current Status and Listing Details
Despite being on the market, Choo confirmed the presence of employees at the hospital, maintaining access to the premises. The listing for the hospital is managed by the Phoenix office of Northmarq, a company specializing in commercial real estate nationwide. Dana Summers serves as the listing agent, and Jeff Matulis, a senior vice president for Northmarq, expressed their commitment to finding potential buyers.
Potential Uses and Stakeholder Engagement
Matulis outlined various potential uses for the property, including transformation into a community hospital or rehabilitation center. Northmarq has actively engaged with the Town of Sahuarita and Pima County, among others, in their pursuit of identifying suitable buyers. The process involves thorough exploration, as Matulis mentioned they are “turning over every stone” to facilitate the sale of the Santa Cruz Valley Regional Hospital.
The Path Forward: Exploring Possibilities
As the Santa Cruz Valley Regional Hospital is put up for sale, various stakeholders are involved in shaping its future. The potential applications of the property, ongoing efforts to reopen the facility, and engagement with local authorities underscore the complex dynamics surrounding the sale. The uncertainty of the situation adds intrigue to the future trajectory of this once-vital community asset.