In early January, the Santa Cruz Valley Regional Hospital, located in California, was listed for sale by its owner, Broadstone, a New York-based real estate investment trust. The decision to sell came two months after Broadstone referred to the hospital as a distraction within its extensive 800-property portfolio.
Broadstone’s CEO, John D. Moragne, expressed the company’s stance during a third-quarter phone call with investors on November 2. Moragne mentioned efforts to engage local brokers for re-tenanting or selling the asset. He highlighted the challenges faced by a California group attempting to reopen the hospital in 2023, citing their failure to meet specific milestones outlined in the agreement. Additionally, Moragne noted that rent due on October 1 had not been received.
Current Status and Lack of Information
Despite efforts to gather more details, Broadstone did not respond to an email seeking additional information. The uncertainty surrounds the group led by Precious Velvet Mayes, the CEO and president of Pacifica Hospital of the Valley in the San Fernando Valley. Mayes and Chief Operations Officer Michael Choo have not provided comments on whether they still hold a lease on the property or if their efforts to reopen the hospital have ceased.
Listing and Potential Uses
The listing for the hospital is managed by the Phoenix office of Northmarq, specializing in commercial real estate nationwide. Dana Summers serves as the listing agent. Jeff Matulis, a senior vice president for Northmarq based in Tulsa, stated that they are actively exploring various options to attract potential buyers. Matulis mentioned the property’s potential uses, including transforming it into a community hospital or rehabilitation center. Conversations have taken place with the Town of Sahuarita and Pima County, indicating interest from multiple parties.
Conclusion: Exploring Opportunities
As the Santa Cruz Valley Regional Hospital is put up for sale, the future possibilities for its utilization are diverse. Potential buyers are being actively sought, and discussions with local authorities reflect a collaborative effort to explore opportunities beyond its previous healthcare function. The situation underscores the intricate dynamics between property owners, aspiring operators, and the broader community’s interests.