Size: 806,000 sf
Location: Philadelphia, Pennsylvania
The University of Pennsylvania Health System (UPHS) entered into negotiations with Tenet Health Systems in 2006 for acquisition of Tenet’s Graduate Hospital real estate assets. The assets in the proposed transaction included the Main Hospital Building; the former hospital, Pepper Pavilion; an ambulatory care building; a parking garage; two medical office buildings; and adjacent land parcels.
UPHS and Aegis Property Group assembled a team of consultants including representatives from Ballinger, Agoos Lovera, Pennoni Associates, and HSC Builders to develop the information required to complete the due diligence process. The scope of services for the buildings included preparing design concepts and cost estimates for the renovation of the Main Hospital Building, and preparation of an engineering evaluation of the building systems in the Main Building and the other buildings. For the excess real estate, Aegis undertook an analysis of the potential sale proceeds from their liquidation.
UPHS acquired the Tenet assets in April 2007 and proceeded with the renovation of the Main Building. Aegis then managed the disposition of all the excess real estate assets including the two medical offices, the old hospital building, and three land sites in a seris of five separate sales to different buyers. The value realized from disposition of the excess real estate exceeded the acquisition price of all real estate purchased from Tenet.