The Real Deal New York

Cobble Hill hospital operator ends talks with Don Peebles

Negotiations to resume with Fortis Property Group over redevelopment

May 29, 2014 09:00AM

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Don Peebles and 339 Hicks Street

SUNY Downstate Medical Center officials have decided to end talks with developer Don Peebles over acquisition of the Long Island College Hospital in Cobble Hill.

The two parties failed to agree on who would handle possible environment remediation expensed. They also could not reach an agreement on when SUNY, the medical facility’s current operator, would part ways with it.Prominent African-American development firm the Peebles Corporation had partnered with North Shore-LIJ to spend $260 million on redevelopment of the site, Capital New York reported.

Instead, SUNY plans to resume talks with Fortis Property Group. The board paused a deal in December, hoping that Mayor Bill de Blasio could solve the matter. Fortis’ plan would preserve some health care operations and convert part of the site into high-end condominiums.

Brooklyn Health Partners was the top bidder in a selection process led by SUNY, but was disqualified amid financial concerns, as previously reported. The second-highest bidder was Peebles. [Capital NY]Mark Maurer

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