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Successful Sale of St. Mary’s Hospital in Crown Heights, Brooklyn
Bob Knakal successfully arranged the $22,000,000 sale of the former St. Mary’s Hospital in Crown Heights, Brooklyn. The property, comprised of two interconnected buildings totaling approximately 270,000 square feet, was purchased by Yehuda Backer of The Mazel Group. The buyer plans to convert the vacant hospital into a nursing home facility to meet the growing demand for healthcare-focused real estate in Brooklyn.
This transaction highlights the continued shift in institutional real estate assets toward alternative and long-term care uses, particularly in underserved neighborhoods like Crown Heights.
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Sale Details
The sale of St. Mary’s Hospital represents a major institutional redevelopment in central Brooklyn, demonstrating both the adaptive reuse potential of older healthcare facilities and the strong investor appetite for healthcare conversions.
Sale Price: $22,000,000
Price per Square Foot: $81.48
Buyer: Yehuda Backer, The Mazel Group
Seller: Saint Mary’s Hospital
Asset Class: Hospital Conversion / Institutional
Date Closed: April 30, 2007
Key Highlights:
- 270,000 SF across two buildings
- Previously operated as a full-service hospital
- Acquired for conversion into a long-term care/nursing facility
- Located in the heart of Crown Heights with access to public transit and residential density
Property Details
The St. Mary’s Hospital campus includes two substantial buildings formerly used for acute care operations. The site offered a rare, large-scale redevelopment opportunity in Brooklyn with existing healthcare infrastructure that could be adapted for nursing or long-term care use.
Full Address: St. Mary’s Hospital, Crown Heights, Brooklyn, NY
Total Buildings: 2
Total Square Footage: 270,000 SF
Planned Use: Nursing Home Conversion
Zoning: Institutional Use Permitted
Investment Highlights:
- Rare large-scale institutional asset with conversion potential
- Cost-efficient price per square foot for redevelopment
- Strong demographic need for long-term care facilities in Brooklyn
- Existing infrastructure suitable for medical or residential reconfiguration
Market Strategy and Positioning
Bob Knakal targeted a buyer pool focused on healthcare and institutional asset repositioning. Recognizing the growing demand for nursing home and elder care facilities in Brooklyn, he marketed the property not as a shuttered hospital, but as a ready-made platform for conversion.
By identifying The Mazel Group—a developer with a history of medical facility conversions—Bob was able to secure a competitive offer that maximized the asset’s potential.
Neighborhood Overview
Crown Heights is a densely populated residential neighborhood in central Brooklyn known for its cultural diversity and vibrant community life. With aging infrastructure and increasing demand for healthcare services, Crown Heights is emerging as a strategic location for medical and elder care facilities.
Notable Neighborhood Features:
- Centrally located near major Brooklyn thoroughfares
- Dense population base ideal for service-oriented development
- Access to Eastern Parkway and multiple subway lines
- Close proximity to Prospect Park and the Brooklyn Museum
Conclusion
The $22 million sale of St. Mary’s Hospital in Crown Heights underscores the evolving nature of institutional real estate and the value of strategic conversion. With demand rising for long-term care facilities in Brooklyn, this transaction marks an important step in adaptive reuse. Bob Knakal’s ability to identify the right buyer and reposition the property for its highest and best use resulted in a successful outcome for all parties.
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Frequently Asked Questions
Q1: What was the intended use for St. Mary’s Hospital after the sale?
A1: The buyer planned to convert the hospital into a nursing home to meet growing healthcare needs in Brooklyn.
Q2: How large is the property?
A2: The site includes approximately 270,000 square feet across two buildings.
Q3: Why was Crown Heights an appealing location for this type of conversion?
A3: Crown Heights offers a dense residential population, aging infrastructure in need of care solutions, and strong transit accessibility—making it ideal for long-term care services.
