The pending sale includes the 263,000-sf, six-story main hospital building on East 29th St., a four-story parking garage, the single-story Bayonne Medical Foundation building on Avenue E and a 7,400-sf financial services building on East 29th. There is also a piece of vacant land on Avenue E.
"This action will create a financially stronger institution and enable the hospital to operate on a normal basis," said BMC acting president and CEO Daniel Kane in a prepared statement when the institution filed for Chapter 11. "Our board of directors determined that this filing is necessary and represents the hospital's best opportunity to continue."
But the property quickly began to draw offers, including the one currently on the table from IJKG. That offer represents a significant upgrade from a previous one from the same group for less than half the $41.6 million, which combines cash and non-cash considerations. The earlier offer was declined.
The deal, which IJKG officials say they hope to close in late January, still faces a number of approvals, including clearance from US Bankruptcy Court Judge Morris Stern. Others in line include the state Chancery Court, the State Health Planning Board and the state Attorney general's office.
IJKG principals say that, as part of the deal, they will continue to operate the hospital as an acute care facility. That promise is a requirement in order to qualify for both a $2.5 million loan from the New Jersey Health Care Facilities Financing Authority, and a $6 million loan from the city.
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