Asking price for the 851,000-square foot property, which houses two small surgical hospitals, a psychiatric hospital and several other healthcare businesses, is $12.5 million.
“Basically, it’s a medical office mall,” said Patsy Boatright, executive vice president of Delamore Elizabeth Place. “It’s an investment property, so whoever comes in is going to buy it for the tenant mix. That’s what makes the property worth anything is the tenants. An almost million-square foot property sitting vacant doesn’t make any money in Dayton, Ohio.”
Franciscan Medical Center, originally St. Elizabeth Hospital, closed in 2000. The building stood empty for two years, then was bought by a group of investors. At one point, a group of physicians planned to open a specialty heart hospital on the site.
The current owners bought it in 2007. The property went into Chapter 11 bankruptcy protection in October 2009 to try to refinance the mortgage, but owners couldn’t reach an agreement with the lender.
The property is about 78 percent occupied, Boatright said, and the owners hope all of the current tenants will remain in place and operating while the property is on the market.
“The primary goal with the sale of the property is to preserve Elizabeth Place and lay the groundwork for the long-term success of not only the Elizabeth Place campus but also all of the tenants that are a part of our campus,” Delamore Elizabeth Place said in a statement released Friday.
Tenants include St. Elizabeth Urgent Care, Hemodialysis Inc., Dayton Home Dialysis, Ameribest Home Health Inc., and the Dayton Rehabilitation Institute, as well as several other medical, dental and health practices.
The Montgomery County Board of Developmental Disabilities also has an office in the space.
Net cash flow on the property is between $500,000 and $1 million a year, said John Packer, asset manager for the property.
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