The former Parkland Memorial Hospital campus sits along Harry Hines Boulevard and Medical District Drive.

Commercial Real Estate

Parkland Hospital Sale Not Completed

Dreien Opportunity Partners was "not able to close the necessary financing within the time frame required."

D CEO’s Shawn Shinneman got a statement this afternoon stating that the expected $83.3 million sale of the former Parkland Memorial Hospital to Sam Ware’s Dreien Opportunity Partners was not completed yesterday, April 17, as scheduled.

Last month, the Dallas County commissioners narrowly approved an amendment to the sale following some squabbles that the deal wasn’t as favorable to the county hospital as some wanted. Ware has hopes to turn the 38-acre campus into a mixed-use project with micro-unit apartments, a hotel, condos, and more.

About two weeks ago, Ware asked Parkland for a 30-day extension in closing the deal because his undisclosed local lender needed more time to close about $53 million in senior debt. The county commissioners denied an extension, Ware says, though he offered “significant dollars” for it, in addition to the earnest money already in the deal.

Ware intends to rebid for the project. “That’s the only option here,” he says. “No one has the amount of information we’ve created at this project.” Ware has been adamant since he first got involved in the project that he plans to restore, rather than demolish, the former hospital. “What I really hope doesn’t happen is that someone wins the bid and then knocks it down.”

Parkland hasn’t returned calls for comment. We’re working to learn more details. Statement after the jump, below.

Parkland has been notified that Dreien Opportunities LLC, who had entered into an $83.3 million deal to purchase the former Parkland Memorial Hospital campus, was not able to complete and close the necessary financing within the time frame required under the purchase agreement. The deadline for closing the purchase for the property was April 17, 2018.

Under the contract Parkland will retain the $3 million earnest money.

Parkland is preparing to remarket the property. During the remarketing period, Dreien, as well as other interested potential purchaser’s may make proposals for Parkland’s
consideration. Following the remarketing period, Parkland’s management team and Board of Directors, as well as the County Commissioner’s Court will consider all proposals and determine which proposal is in the public’s best interest.

Comments

  • Happy Bennett

    Yep let’s raise those property taxes….

  • Mavdog

    Forfeiting the Earnest Deposit is a bitter pill to swallow if Dreien was as close to completing the sale as was suggested, but they (and the lenders) knew the timelines. Dreien had a concept that preserved the buildings and appeared to make a great deal of sense with the demand in the market.
    At the same time, with the Buyer placing “significant dollars” more at risk, this seems to say the Seller decided it was in its best interests to do a reset and take the property back to market.
    Apparently the Commissioners who didn’t previously support the sale to Dreien prevailed. I wonder if they will look back and regret this termination of the current PSA? Time will tell…