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Diversified, Tarrant Ink Sale of Medical Block

FORT WORTH-Tarrant County Hospital District buys the shuttered 598,000-sf St. Joe's hospital, patient tower and parking garage from a three-year owner planning a $30-million redo.

By Connie Gore | Updated on July 29, 2008

FORT WORTH-Dropping a plan for a mixed-use redevelopment, Diversified Capital Inc. has turned over the deed to the shuttered 598,000-sf St. Joseph Hospital to the Tarrant County Hospital District for $5.1 million. The seller had acquired the hospital, 12-story patient tower and 550-space parking garage in August 2005.

The Lakewood, NJ-based Diversified Capital was wired the funds yesterday, immediately after the Tarrant County Commissioners Court approved the acquisition of the 8.2-acre asset at 1401 S. Main St. The property abuts John Peter Smith Hospital, which has been in an expansion mode and needs additional parking. County officials say the site’s use will be determined later.

“We were working a $30-million redevelopment, but as construction costs started to rise in the past three years, the risk-reward ratio was moving against us,” Bruce Stern, vice president of business development for Diversified Capital, tells GlobeSt.com about the off-market deal. “When JPS approached us with a fair offer to buy the property as is, we decided to forego the redevelopment opportunity and take a healthy profit in a short period of time with no risk.”

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