By Jeremy Walsh
The would-be rescuer of St. John’s and Mary Immaculate hospitals is now in the running to acquire the Elmhurst property, an official with a familiar face told Community Board 4 last week.
Hays Ventures, a Manhattan-based real estate investment firm founded and headed by Justin Green, was the previously unnamed firm that offered $43 million for the building.
“You’re looking at it right here,” Project Developer Dan Panitz said during a presentation to CB 4’s Land Use Committee last Thursday. “Our goal was to keep the hospitals open. It fell apart in the 11th hour.”
Panitz, who grew up in Elmhurst and Corona and served on CB 4, said if their bid for the property is accepted, they will convert the existing building to accommodate a medical center, a supermarket and a school.
Panitz said Hays had been working on acquiring St. John’s and Mary Immaculate Hospital in Jamaica from the faltering Caritas Health System for three years in the hopes of buying the properties and acting as landlords for the hospitals.
“When [Wyckoff Hospital President] Dominick Gio took over the hospitals, a number of times we thought we had a deal,” he said. But when Tom Singleton took over as chief restructuring officer, Panitz said he asked for too much money and negotiations petered out. Panitz is hoping that will change with the hospital closed and the company liquidating.
“They hired CBRE to sell assets at a much lower price,” he said, referring to the major commercial real estate firm CB Richard Ellis.
Green was mainly silent, chiming in only to say Hays had submitted a bid for the property.
“Whether our bid is accepted or not, we will be at the auction,” Green said. “We will acquire the asset.”
Though he knew it risked leaking his intentions to rival bidders, Panitz said he presented the plan to the board because he wanted their input in selecting the type of medical center and educational facility the building would host if they win the bid.
“I’m not willing to do anything till I know we’re working together,” he said. “I don’t need to walk into Elmhurst and have Mrs. Levinson throw a tomato at my head.”
“Brick,” Committee Chairwoman Miram Levinson shot back.
Panitz said Hays has a letter of intent from a “prominent, cash-strong medical facility” to rent a portion of the space. He declined to name the company because of the ongoing negotiations.
For retail, CB 4 members seemed most interested in a supermarket.
“I can’t buy milk or bread for less than twice the price in these little stores,” CB 4 member Nick Penacchio said.
“It will be a supermarket that is doing very well, that has TV commercials,” Panitz said.
The board differed more on what sort of educational facility they preferred. Some suggested a small, Catholic high school. Others insisted a community center would be preferable to a school.
Levinson condemned the idea outright.
“This is no place to put a school,” she said. “There are plenty of other places in Elmhurst.”
Reach reporter Jeremy Walsh by e-mail at jewalsh@cnglocal.com or by phone at 718-229-0300, Ext. 154.what is thisi
