"The decision to file for Chapter 11 protection was made as the result of several years of significant operating losses and a non-reversible liquidity crisis," says a hospital spokesman, in a prepared statement. "As the hospital was unsuccessful in finding a strategic partner, it [became] necessary to close the institution's entire operation."

The auction process is being conducted for the ownership, which bears the name Pascack Valley Hospital, by Cushman & Wakefield of NJ, East Rutherford, with the latter firm's Jose Cruz, executive managing director of the its capital markets group, listed in offering materials as the contact. A deadline of noon on Jan. 28 has been set for bids on the property.

"Interest has been high for both medical and non-medical use," Cruz tells GlobeSt.com. "We've done a lot of tours. We'll know a lot more within a week. It's going to be quick."

That's because the auction process for the politically-charged property is on a tight timeframe. After that Jan. 28 deadline, court will be in session on Feb. 4 and a deal is expected to come on Feb. 6, according to the time frame that's been laid out by the bankruptcy court.

The property consists of the 280-bed main hospital building at 250 Old Hook Rd. The facility had undergone a major expansion as recently as 2005, a project that added approximately 130,000 sf to the main building and 5,000 sf to the emergency department and cost more than $50 million.

Also part of the offering is a trio of medical office buildings located at 270, 363 and 400 Old Hook Rd., totaling more than 54,000 sf. The three buildings, consisting of linked brick facades and a full-height atrium core, are currently 86% leased to 13 tenants, according to information provided by Cushman & Wakefield. The MOB portfolio is actually owned by two separate, unidentified entities, and may be purchased separately from the hospital, according to C&W.

"We're going to get bids for the combined property, and for the MOB separately," Cruz says. The property may have seen the last of its days as a medical facility. C&W has advertised that the site "can be considered for alternative uses, in whole or in part." The facility's equipment is also available, according to the offering.