A Baltimore-based developer has completed its purchase of the former UPMC Pinnacle Lancaster Hospital complex in Lancaster, Pennsylvania, and is moving forward with plans to convert the property to residential apartments.
Washington Place Equities (WPE) began the transaction to buy the former hospital in May of 2019 and closed the sale with Pittsburgh-based UPMC earlier this year, according to a news release by commercial real estate agency NAI CIR.
UPMC closed the hospital in March 2019 after acquiring the hospital and UPMC Lititz in 2017 as part of a series of deals that brought Pittsburgh-based UPMC to Central Pennsylvania. UPMC Lititz is still in operation.
Washington and UPMC worked with the City of Lancaster to rezone the project from Hospital Use to Mixed Use zoning on the six-acre site.
“It has been a true collaborative effort between the city of Lancaster, UPMC and WPE leading to an exciting redevelopment project benefiting the entire community,” said Robin Zellers, NAI CIR president.
Washington Place is partnering with Lancaster-based developer HDC MidAtlantic to redevelop the former hospital through a three-phase project expected to cost over $90 million.
In October, HDC MidAtlantic provided an update on the project, known as the Apartments at College Avenue.
Phase one of the project will include 48 one-bedroom apartments and 16 two-bedroom apartments. Construction is expected to begin in the coming months with phase one costing approximately $15.4 million when finished.
Phase two, which will focus on the renovation of the Delp Wing of the St. Joseph’s Hospital’s main campus, is expected to include approximately 50 affordable apartments.