Developer Shops $250M Hospital Re-Use

WHITE PLAINS-Just about four months after receiving site plan approval from the City of White Plains, North Street Community has hired Cushman & Wakefield to evaluate numerous offers the firm has received on the development. The development plans include a $250-million age-restricted residential and healthcare community on the former grounds of St. Agnes Hospital here.

North Street officials say in a statement that the offers range from proposals encompassing facilities management to possible joint venture partnerships. Interest has come from potential investors and operators of senior housing developments.

A North Street spokesman, when asked by GlobeSt.com whether an outright sale offer might be considered, responded, "We will evaluate any offer of interest, including if it is an outright purchase."

He added, "North Street Community is exceptionally well capitalized and could maintain full ownership of the property and develop the project for which they have worked three years to gain an approval. It is appropriate, however, for the owners to explore the extensive opportunities that are available within the medical and age-oriented real estate fields that continue to be financially strong."

Cushman & Wakefield's Senior Housing and Healthcare Group, headed by Michael Berne, along with C&W's Andrew Merin and Gary Gabriel, will be working on the assignment. Arthur Caiola, a partner with the North Street firm, says, "rather than deal with these inquiries in a piecemeal fashion, we've decided to bring in experts with the expertise and understanding to assist and advise us. Our goal from the start has been to develop the best possible senior residential community."

The development firm states that it has received "numerous unsolicited inquires from companies involved in the senior housing and healthcare fields." The spokesman says that since construction will not start until next spring, "The time is right to do this."

CJ Follini, a partner with the firm, previously told GlobeSt.com that he expected North Street might do a joint venture with an operating firm on the assisted living and Alzheimer's unit component of the project. The study to be undertaken by C&W widens the possible investment, operating and even ownership possibilities for the property and project.

The approved project calls for 335-luxury condominium units for those 60-years of age and older located in four new structures ranging in size from four to six stories. There will also be 92 assisted living units and approximately 20 Alzheimer's units developed under the plan approved by the city. A two-story 28,000-sf club building, which will feature a wellness center with a whirlpool and lap pool, a spa, an exercise fitness area and dining facilities, is also planned.

The partnership paid $21.4 million in December 2004 in a foreclosure auction conducted by the New York State Dormitory Authority for the 23-acre property that included the shuttered St. Agnes Hospital. Later the partnership acquired an 82,000-sf office/medical building on the property in a private sale.