Deal for Former Parkland Campus Falls Through

Well, this came as a surprise in the inbox when I returned from lunch. Parkland Health & Hospital System says in a statement that they will remarket the former Parkland campus after the deal with the previous buyer fell through.

The statement, which comes from Michael Malaise, Parkland’s SVP for community and external relations, says Dreien Opportunities LLC was unable to “complete and close the necessary financing within the time frame required under the purchase agreement.” The deadline was April 17, and it came and went.

Here’s Malaise’s full statement:

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 [sic] 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.

Dreien CEO Sam Ware had discussed his plans for the space, which included a mix of housing, senior housing, and “micro” apartments. He told the Dallas Morning News as recently as this month that he expected the deal to close in April.

D CEO real estate editor Julia Bunch is also on the story, and made contact with Ware this afternoon:

In an email, Ware said he asked for a 30-day extension, which was not granted by the Parkland board and commissioners. He says he has a lender lined up and reiterated his intention to keep moving forward on the project and rebid, if necessary.

Update: Ware went on to tell us, during a call, that he offered “significant dollars” in exchange for the month-long extension. He brought the idea up to the Parkland board about two weeks ago but says it was ultimately the sway of the commissioners that resulted in its denial. He also vowed to re-bid and said the intel Dreien has collected on the project gives the firm a leg up in the pending process.