West Reading, Pa.-based Tower Health made $11 million from the sale of a shuttered hospital campus, BucksCo.Today reported April 23.
Tower Health sold the former Brandywine Hospital site to a subsidiary of real estate developer Regal Builders in March. The Coatesville, Pa.-based hospital closed in January 2022.
Philadelphia-based Penn Medicine signed a letter of intent in June 2023 to purchase the hospital after signing a memorandum of understanding with the Department of Veterans Affairs through expansions under the PACT Act. But Penn Medicine backed out of the deal in January 2024 after determining they would be unable to build out the infrastructure for its planned project in the space available on the campus.
Real Builders is marketing space for lease, which has a “collection of buildings” and 11 acres of land available for development, according to the report.
Tower Health said in March that the sale improves its financial position by increasing liquidity while removing the ongoing operational costs associated with maintaining the property.
“This marks one of the final steps in our long-term strategy to rightsize our footprint, allowing us to focus resources on solidifying our presence as the leading health system in our core service areas of Berks, Northern Chester, and Western Montgomery counties, as well as St. Christopher’s Hospital for Children,” the system’s statement said.