Former Hospital Sells for Close to $5M

The six-story building was sold by the Kessler Institute and its parent, the Mechanicsburg, PA-based Select Medical Corp., to Lakewood-based Diversified Capital, an eight-year-old commercial real estate investment and management firm headed by Joseph Rosenbaum. The New York City-based Eastern Consolidated represented both sides.

On the seller's side, Eastern Consolidated director David Schechtman represented Select Medical and Kessler. The buyer was represented by Eastern principal Jeff Troy, who teamed with Martin Kreiman of HK Commercial Realty Advisors of Colts Neck. Attorneys were Steven Fleissig of Herrick Feinstein for the buyer and Jason Bundick of Drinker Biddle for the seller.

"My focus is on representing sellers who are repositioning their real estate holdings," Schechtman says. "For Select Medical, this was a disposal of surplus property."

The building, which sits on 2.3 acres adjacent to Exit 145 of the Garden State Parkway, became surplus in the wake of Kessler's expansion and renovation of other, newer facilities it occupies in the region. Most notably, as reported by GlobeSt.com, the Institute completed a 102,000-sf expansion/renovation program earlier this year at its facility in nearby West Orange, a project involving a total of 275,000 sf.

Diversified Capital hasn't disclosed its plans for the property, although offices or residences or a combination of both are said to be in the works. The company, which has assets in five states with a focus on New Jersey, Texas and Pennsylvania, has redeveloped or repositioned a number of properties, most notably the former St. Joseph's Hospital in Fort Worth. The latter is being turned into a combination of offices and residential units.