The State Street Hospital property has been sold to NewHeight Group and Redfern properties, two high end developers in Portland. Proceeds from the sale will be invested in the Mercy Hospital Fore River campus. That is where Mercy will consolidate hospital operations according to a press released issued this afternoon by Ed Gilman, communications director.
The Fore River project just received approval from the city’s planning board to move forward with its plans to consolidate at the Fore River campus.
In the near term, little will change at the State Street hospital. As part of the agreement, Mercy will lease back and occupy the State Street property until its able to relocate operations to an expanded Fore River campus.
Construction on the Fore River campus is scheduled to begin this spring with project completion expected in 2022. This schedule will allow ample time for the development team to engage with neighbors and the community on the details of their development.plans.
Chip Newell is a principal of NewHeight, developer of 118 Congress Street, Luminato and other high end condos on Munjoy Hill. Real estate attorney Tom Federle was a partner on the Luminato project near Franklin Street on Munjoy HIll. Federle was a real estate attorney for hedge fund owner Donald Sussman who failed to develop the Hampshire Street corridor as promised. Jonathan Culley is the principal with Redfern and developed: The Hiawatha, 89 Anderson Street, Munjoy Heights, and West End Place.