The Real Deal Miami

Westchester Hospital sells Hialeah psychiatric campus for $15M

Buyer operates scores of nursing homes throughout U.S.

June 03, 2016 12:00PM
By Sean Stewart-Muniz

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Southern Winds Hospital

Southern Winds Hospital

Westchester General Hospital just sold its psychiatric campus in Hialeah to a for-profit healthcare company for $15 million.

County records show an affiliate of Millennium Management bought the 72-bed psychiatric care facility at 4225 Northwest 20th Avenue.

Westchester had operated Southern Winds as a for-profit psychiatric care facility since it built the facility in 1988. It has 54 adult beds, 18 child beds and can receive “Baker Act” patients, where a person is institutionalized involuntarily to prevent harm to themselves or others.

Miami-based Millennium, on the other hand, operates scores of nursing homes throughout the U.S. The company is led by healthcare mogul Abraham Shaulson.

As the South Florida Business Journal reported earlier this year, Millennium entered into an agreement to buy the Southern Winds campus in April for an unknown price. A major key to the sale was the Florida Agency for Health Care Administration’s decision to transfer the hospital’s license over to Millennium.

County records show the deal was heavily leveraged, with Millennium taking out two loans totalling $14.8 million from the Privatebank and Trust Co.

One is a five-year loan for $12.8 million, and the other is a $2 million loan to cover operations that matures in just one year, according to mortgage documents.

Though they’re typically overshadowed by reports on luxury real estate, medical properties are still attractive assets to investors. Aventura, for instance, boasts a booming medical office submarket, and a new mixed-use development called Aventura ParkSquare is even catering to that sector with an entirely health-oriented campus.