CIT Group guides re-structuring of Victory Memorial Hospital

Real Estate Weekly, July 16, 2008

CIT Group served as the exclusive real estate avisor to both Victory Memorial Hospital and its Official Committee of Unsecured Creditors in the sale of the hospital's main campus in Brooklyn, NY to Sunset LG Realty LLC for $44.9 million.

The sale, approved last week by the United States Bankruptcy Court, includes the hospital's main campus site and two operating businesses--Victory's 150 bed skilled nursing facility and its 400 patient home health care business.

New ownership is arranging for the continued operation of both of these programs, the hospital's clinics and other medical services under new management.

The transaction, when completed, will be one of the first successful sales and restructurings of medical services at a hospital slated for closure by the Berger Commission, a non-partisan panel created by former New York Governor Pataki and the New York State Legislature to review the regional and local supply of hospital and nursing home beds throughout the State.

"This deal is a great example of how financially stressed institutions can effectively monetize real estate assets and restructure services so that business continues and community needs are served," said Natalie Wilensky, managing director of CIT Investment Banking Services, Real Estate.

"We are delighted with the outstanding results the CIT team achieved in leading our sales process," said Dr. Vincent Calamia, CEO of Victory Memorial Hospital.

"Their depth of knowledge and strong relationships within both the real estate and healthcare industries and their skill in navigating a particularly complex and politically charged environment enabled us to find a buyer for Victory Memorial that will ensure continued medical services to the community."