SUNY finalizes Long Island College Hospital sale

Fortis Property Group scheduled to sign $240M deal on June 30

New York /
Jun.June 25, 2014 03:40 PM

The State University of New York board has voted to proceed with the sale of Long Island College Hospital to Fortis Property Group.

According to the deal, which is scheduled to be signed on June 30, SUNY will operate the emergency department until NYU Langone Medical Center — a partner with Fortis — takes over operations on Sept. 1. Fortis will pay the university $240 million for the Cobble Hill site in addition to the cost of keeping the emergency department open in the interim period. Fortis will also be responsible for any malpractice insurance costs the university incurs, Crain’s reported.

The emergency department currently sees approximately 35 patients per day, according to Ruth Booher, SUNY’s general counsel. The remainder of the full-service hospital was shuttered in May.

The SUNY Board of Trustees has been trying to close the hospital since February 2013. “I think we are ending up in The Right Place,” SUNY trustee Richard Socarides, who initially expressed concerns about the Fortis deal, told Crain’s. “We may have ended up in The Right Place sooner had it not been for some outside influences.”

Previous negotiations with the Peebles Corporation, an earlier bidder, derailed because of a disagreement over environmental liability, as Crain’s reported.

Fortis will start construction on a new building to consolidate all medical services within six months of the closing of the sale. The project is slated for completion within three years. [Crain’s]Sasha von Oldershausen


Related Articles

arrow_forward_ios
30 Front Street & 294 Park Place (Streeteasy, Getty)
Brooklyn luxury market can’t shake slump
Brooklyn luxury market can’t shake slump
Ben Simmons and Olympia Dumbo (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Olympia Dumbo)
Fortis’ Olympia Dumbo lures Brooklyn Nets star
Fortis’ Olympia Dumbo lures Brooklyn Nets star
Fortis Group’s Joel Kestenbaum with 161 Maiden Lane
Mack Real Estate sues for $566M over Fortis project loans
Mack Real Estate sues for $566M over Fortis project loans
Madison Realty's Brian Shatz, Fortis' Jonathan Landau and renderings of One River Park and Two River Park in Cobble Hill (Sasha Maslov, Madison Realty, Fortis Property Group, Illustration by The Real Deal with Getty)
Fortis faces foreclosure on large Cobble Hill condo project
Fortis faces foreclosure on large Cobble Hill condo project
TRD Pro, Residential Real Estate, Cobble Hill, Carroll Gardens
TRD Pro: Brooklyn’s top neighborhoods by average sale price
TRD Pro: Brooklyn’s top neighborhoods by average sale price
60 South 8th Street, #PH3 and 57 Wyckoff Street (Streeteasy)
Not your average row house: $10M home tops Brooklyn market
Not your average row house: $10M home tops Brooklyn market
Fortis' Jonathan Landau with Olympia Dumbo (Fortis Property Group, Olympia Dumbo)
Fortis’ Olympia Dumbo on track to be Brooklyn’s most expensive building
Fortis’ Olympia Dumbo on track to be Brooklyn’s most expensive building
JDS Development Group’s Michael Stern and 111 West 57th Street; Fortis Property Group’s Jonathan Landau and Olympia Dumbo (Olympia Dumbo, 111 West 57, Fortis Property Group, iStock)
Rising rates slow new development sales in Brooklyn, Queens
Rising rates slow new development sales in Brooklyn, Queens
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...