Brooklyn Hospital Center nears $100 million deal to sell the Maynard Building

Photo: CoStar Group Inc.
240 Willoughby St.

The Brooklyn Hospital Center is closing in on a deal to sell a large medical building on its campus next to Fort Greene Park for more than $100 million.

Bids for the 21-story property at 240 Willoughby St. were due late last week, with offers coming in as high as $115 million, according to a source. Bob Knakal, Cushman & Wakefield’s chairman of investment sales who is handling the auction of the property for the hospital, did not comment.

The 150,000-square-foot property, known as the Maynard Building, houses medical offices mainly used by doctors and specialists for outpatient visits and also includes apartments for hospital staff. The existing building can be knocked down and replaced by a residential tower more than double in size and potentially much taller in height.

According to a spokeswoman for The Brooklyn Hospital Center, it plans to use the proceeds from the sale to help develop new facilities on its campus, which spans an entire block along Ashland Place from Willoughby Street to Dekalb Avenue.

The 170-year-old hospital, is the borough’s oldest according to the spokeswoman. And recently it outlined a 25-year development plan to update and build new medical facilities. She said the first project the hospital will undertake will be to rebuild the medical space at the Maynard Building at another site. One potential location is a parking lot the hospital owns at the corner of Ashland Place and Dekalb Avenue.

“Selling Maynard is helping us to sustain our mission and build a new ambulatory care center,” she said, adding that the hospital has not yet finalized how big the new facility will be, but has decided it will offer new services such as an imaging center.

The buyer of the Maynard Building will be able to erect a roughly 330,000-square-foot residential tower in its place with a private entrance to Fort Greene Park—a feature that would make it the only residential property in the neighborhood to connect directly to the park. The development site offers other desirable perks, such as views of Manhattan.

The Brooklyn Hospital Center plans to continue to lease and remain in the property until 2019, giving it time to relocate staff from the Maynard Building to a new facility. The spokeswoman said the hospital will prioritize potential buyers who will offer a development plan “in accordance with the neighborhood and will be a good neighbor.”