Chi acquires Beverly Hospital Hunt Center for $4.5 million - Jones Lang LaSalle to lease

Central  Healthcare Initiatives (Chi), an innovator in real  estate and operational strategies for healthcare  entities, has purchased the  Beverly Hospital Hunt Center at 75 Lindall  St. Jones Lang  LaSalle represented the seller Northeast  Hospital Corp. and procured the  buyer. The transaction consists of the  150,000 s/f, Joint  Commission on Accreditation of Healthcare Organizations-compliant (JCAHO) facility on 16.5 acres off of  Rte. 62. Chi, a subsidiary of The Traina  Cos., will utilize its healthcare and real  estate expertise to develop and manage a healthcare campus, sensitively  integrated into the surrounding residential  neighborhood and responsive to local needs. Uses  being considered include a specialty healthcare  facility, a multi-tenant campus of synergistic  medical practices, and senior care services.   Adjacent to the property are the Hunt Nursing  & Retirement Home, and Putnam Farm operated  by Benchmark Assisted  Living. The estimated $100 million project  is financed in part by local Reading  Co-operative Bank. The Boston  office of architectural firm Perkins Eastman is  responsible for project planning/design. Local  counsel Nancy McCann, Esq. will continue to work  with Chi as it integrates into the community. Chi chairman Joseph  Traina said, "We are committed to collaborating with the community to develop a meaningful new healthcare asset, in keeping with the character  of the town, and providing services our  neighbors want and need." "There is a crisis for healthcare  providers struggling to maintain quality of  service in the face of rising costs and falling  reimbursements, and competing with big-city or  large scale operations. A thoughtful repurposing like this has many important benefits: we can  bring equivalent space to the market for far  below new space, lowering occupancy costs for  practitioners, and leveling the field for local  providers," said Nestorio Tanpiengco,  president and chief operating officer of Chi.   Peter Richardson,  senior vice president of Jones Lang LaSalle, negotiated the transaction. The firm has been  retained to lease the medical office space. "The  existing infrastructure, location, and  hospital/medical zoning offer a rare opportunity  and value to healthcare providers. Several  operating rooms and extensively fitted out  suites and specialty spaces are in near move-in  condition and are available immediately at a  fraction of market  rates." "Our main  objective in this process was to find a buyer  whose intent would be to renew and develop the  property with a focus on the needs and well being  of the town of Danvers and the larger North  Shore community. We believe this objective  has been met by selecting  Chi." said Denis Conroy, chief  financial officer of Northeast Hospital  Corp.   "The town of Danvers looks forward  to the continuation of medical services at the  former Beverly Hospital Hunt Center facility,"  said Wayne Marquis,  town manager.   The property was initially  constructed in 1950, with extensive renovations  and expansions since. It was previously occupied  by Beverly Hospital (Northeast Hospital  Corp.), which relocated a majority of the  services to a new medical and day surgery  outpatient facility in February 2008, vacating  approximately 70% of the buildings. At the time  of the sale, the Beverly Hospital Hunt Center  continues to offer important community services  from several tenants including North Shore  Medical Center adolescent care facilities, The  Center for Healthy Aging, The Sleep Disorder  Center, Five Star Quality Care and Danvers  Family Doctors.