The Real Deal Miami

Larkin buys Hialeah hospital for $40M

Move doubles Larkin's number of beds in Miami-Dade County

February 04, 2016 03:45PM

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The Palm Springs General Hospital in Hialeah

The Palm Springs General Hospital in Hialeah

The Palm Springs General Hospital in Hialeah was recently sold to another Miami healthcare provider for $40 million.

Included in the sale was the four story hospital located at 1475 West 49th Place, plus an adjacent seven-story medical building at 1435 West 49th Place. Together, they house 154,833 square feet of space, according to CoStar Group.

The for-profit hospital was owned by a Florida company called Brusa, Inc., with Campbell Smith, Oakley Smith and Peter Schellens as its managing members.

First opened in 1965, the hospital has gradually expanded over the decades as new departments opened and its wings are renovated. It currently has 247 patient beds.

Now, through a deal that closed earlier this week, the healthcare center was sold to the Larkin Community Hospital, another for-profit South Miami hospital that’s owned by physicians. Its purchase price breaks down to $347 per square foot.

The move doubles Larkin’s number of beds in Miami-Dade County. Its location in South Miami has room for 146 patients, according to its website.

Larkin financed its purchase with a $20.5 million loan from Ocean Bank. The financing is split between a $16.5 million loan and a $4 million line of credit from the bank.

The owners of Palm Springs General Hospital had already had a $63 million deal underway last year that fell through, prompting a lawsuit from the buyer-to-be, according to a report from the South Florida Business Journal. — Sean Stewart-Muniz