Patriot Ledger | By Patrick Ronan
December 8, 2016
A commercial real-estate firm has purchased the former Quincy Medical Center campus while concurrently striking a deal with Mayor Thomas Koch that aims to keep medical uses at the closed hospital and gives the company a major role in the city’s downtown redevelopment plans.
FoxRock Properties, a company owned by Rob Hale, who also owns Quincy-based Granite Telecommunications in North Quincy, announced Thursday that it has closed on a $12 million purchase of the 15-acre property at 114 Whitwell St. from the previous owner, Steward Health Care.
The purchase is part of what’s essentially a three-way deal involving FoxRock, Steward and the city of Quincy, which legally holds a future interest in the former hospital site. Steward abruptly closed the 124-year-old, 196-bed acute-care hospital two years ago, leaving behind a satellite emergency room that has remained opened.
As part of its purchase, FoxRock entered into a lease with Steward to keep the satellite ER operational at the current site through December 2021, with an additional five-year extension option.
FoxRock is buying the property, consisting of four buildings and 626,000 square feet of land, for less than half what Steward paid for it through Bankruptcy Court in 2011. The former hospital property, located in the middle of a residential neighborhood called Hospital Hill on the outskirts of Quincy Center, is valued for tax purposes at $42.1 million – about three-and-a-half times the amount FoxRock paid for it.
Koch’s deal with FoxRock, a five-year agreement that requires city council approval, says the city will relinquish its interest in the hospital – called a right of reverter – if FoxRock pays the city $4.2 million or if the company executes one or more leases totaling 150,000 square feet for a length of at least seven years that commits to medical uses at the former hospital property