Business & Finance

Muhlenberg Hospital has been purchased by CHA

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Muhlenberg Medical Arts Center Credits: Bernice Paglia
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Plan for the Muhlenberg site Credits: Bernice Paglia
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PLAINFIELD, NJ – After a long wait and numerous oppositions, the Muhlenberg Hospital sale has been completed. Earlier this month, a judge’s ruling allowed Muhlenberg Urban Renewal, LLC, an affiliate of Bloomfield-based Community Healthcare Associates (CHA), to complete its purchase of the long-shuttered Muhlenberg Regional Medical Center from JFK Health System.

According to their website, CHA has built a successful track record, spanning over a decade, of converting former hospitals into community-based healthcare facilities.  The Plainfield site allows for the redevelopment of a 186,000 sf medical arts complex, and a luxury residential apartment building comprised of 120 units.

Residents will see work commence on the site immediately, first with the installation of perimeter fencing to secure the site during demolition and construction, which is expected to begin later this summer. “Our top priority is to be a good neighbor,” said Bill Colgan, CHA’s managing partner. “To that end, we will be providing additional information to area residents as to what they should expect to see on the site in the coming months, and we will continue to do what we can to be a true community partner.”

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For more information see previous articles: 

Muhlenberg Hospital set for New Life

Planning Board grants waivers for Muhlenberg Project

The project is anticipated to bring, among other services, Primary & Specialty Care, a Women’s Health Center, a Diagnostic Laboratory, an Ambulatory Surgical Center, a Pharmacy, a Sleep Center, a Breast Center, Oncology, Diabetes Counseling, Behavioral Health, a Home Healthcare Agency and Physical Therapy, back to the site that has been closed since 2008.

The residential component will feature a grand lobby, multipurpose rooms, fitness center, business center, bike storage and a rooftop terrace for its 39 one-bedroom and 81 two-bedroom residents. The units themselves will have amenities such as fireplaces, marble countertops, and high-end finishings.

In total, the $57 million project is expected to create 800 local jobs, which will be comprised of 200 construction jobs and 600 permanent jobs.

Pursuant to agreements between the City of Plainfield and CHA, the project will generate approximately $10 million in benefits to Plainfield in the form of Community Benefit Payments and PILOT (Payment in Lieu of Tax) payments.

“This facility, which has sat dormant for nearly a decade, is set to once again become a key revenue generator, a source of jobs, as well as a provider of needed community-based healthcare services, for all of Plainfield,” Colgan said.

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