New York City's Victory Memorial hospital, a historic, not-for-profit voluntary hospital and Skilled Nursing Center, will remain open due to a $44.9 million sale of its main campus located in Brooklyn.
The sale was facilitated by CIT Group Inc., a global commercial finance company, and was purchased by Sunset LG Realty LLC.
When the transaction is completed, it will be one of the first successful sales and restructurings of medical services at a hospital slated for closure by the Berger Commission, a non-partisan panel created by former New York Gov. George Pataki and the New York State Legislature to review the regional and local supply of hospital and nursing home beds throughout the State.
"This deal is a great example of how financially stressed institutions can effectively monetize real estate assets and restructure services so that business continues and community needs are served," said Natalie Wilensky, managing director of CIT Investment Banking Services, Real Estate.
The sale was approved last week by the U.S. Bankruptcy Court and includes the hospital's main campus site and two operating businesses - Victory's 150 bed skilled nursing facility and its 400 patient home health care business.
"We are delighted with the outstanding results the CIT team achieved in leading our sales process," said Vincent Calamia, CEO of Victory Memorial Hospital. "Their depth of knowledge and strong relationships within both the real estate and healthcare industries and their skill in navigating a particularly complex and politically charged environment enabled us to find a buyer for Victory Memorial that will ensure continued medical services to the community."
The new owner is arranging for the continued operation of both of these programs, the hospital's clinics and other medical services under new management.
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