The two parties had a $3.75 million purchasing agreement, which expired March 10.
The Indianapolis Business Journal obtained a loan request document prepared by DealPoint, which indicated the developer hoped to fill up the 869,000 square feet of rentable space in the former hospital campus with medical tenants.
However, a setback to the deal came March 4, when a zoning variance that would have allowed for additional parking on the Franciscan campus was defeated, according to the report.
Franciscan and DealPoint could still end up with a new agreement in place.
In the meantime, Joe Whitsett, CEO of Indianapolis-based TWG Development, is another potential buyer, according to the report. Mr. Whitsett has proposed replacing most of the hospital buildings with single-family homes.
In a statement, Franciscan declined to comment on the future of the property.
“Franciscan Alliance continues to be bound by a confidentiality agreement in the potential purchase of the Beech Grove campus. We understand and share the sincere interest in a positive outcome for the future disposition of the property, but cannot offer comment on any other scenarios at this time,” the system said.
Franciscan St. Francis Health-Beech Grove closed in 2012 and consolidated Beech Grove operations with the system’s Indianapolis campus, Franciscan St. Francis Health.
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