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News release

Danvers, Mass

Chi Acquires Former Beverly Hospital Hunt Center


Danvers, Mass. February 24,  2009 - Chi (Central Healthcare Initiatives), an innovator in real estate and operational strategies for healthcare entities, announces that it has purchased the Beverly Hospital Hunt Center at 75 Lindall Street in Danvers, Massachusetts. Jones Lang LaSalle represented the seller Northeast Hospital Corporation and procured the buyer.
 
The estimated $100,000,000 project is financed in part by local Reading Co-operative Bank (Reading, MA). The Boston office of architectural firm Perkins Eastman is responsible for project planning/design. Local counsel Nancy McCann, Esq. will continue to work with chi as it integrates into the Danvers community.
 
The transaction consists of the 150,000 square foot, JCAHO-compliant (Joint Commission on Accreditation of Healthcare Organizations) facility on 16.5 acres off of Route 62. Chi, a subsidiary of The Traina Companies, will utilize its healthcare and real estate expertise to develop and manage a state-of-the-art healthcare campus, sensitively integrated into the surrounding residential neighborhood and responsive to local needs. Uses being considered include a specialty healthcare facility, a multi-tenant campus of synergistic medical practices, and Senior Care services. Adjacent to the property are the Hunt Nursing & Retirement Home, and Putnam Farm operated by Benchmark Assisted Living, the largest privately held provider of senior living services in the Northeast.
 
According to chi Chairman Joseph R. Traina: "We are committed to collaborating with the community to develop a meaningful new healthcare asset, in keeping with the character of the town, and providing services our neighbors want and need."
 
"There is a crisis for healthcare providers struggling to maintain quality of service in the face of rising costs and falling reimbursements, and competing with big-city or large scale operations. A thoughtful repurposing like this has many important benefits: we can bring equivalent space to the market for far below new space, lowering occupancy costs for practitioners, and leveling the field for local providers," said Nestorio (Nate) Tanpiengco, president and chief operating officer of chi.
 
Peter Richardson, Senior Vice President of Jones Lang LaSalle, negotiated the transaction. The firm has been retained to lease the medical office space. "The existing infrastructure, location, and hospital/medical zoning offer a rare opportunity and value to healthcare providers. Several operating rooms and extensively fitted out suites and specialty spaces are in near move-in condition and are available immediately at a fraction of market rates."
 
"Our main objective in this process was to find a buyer whose intent would be to renew and develop the property with a focus on the needs and wellbeing of the Town of Danvers and the larger North Shore community," said Denis Conroy, chief financial officer of Northeast Hospital Corporation.  "We believe this objective has been met by selecting Chi."
 
Hospital Hunt Center facility," said Wayne Marquis,  Danvers Town Manager.
 
The property was initially constructed in 1950, with extensive renovations and expansions since. It was previously occupied by Beverly Hospital (Northeast Hospital Corporation), which relocated a majority of the services to a new medical and day surgery outpatient facility in February 2008, vacating approximately 70% of the buildings. At the time of the sale, the Beverly Hospital Hunt Center continues to offer important community services from several tenants including North Shore Medical Center adolescent care facilities, The Center for Healthy Aging, The Sleep Disorder Center, Five Star Quality Care and Danvers Family Doctors.
 
BACKGROUND
 
About chi
 
Central Healthcare Initiatives (chi) specializes in value-added real estate development through innovative structures and techniques developed specifically for healthcare related properties. Chi leverages proven operational, financial and real estate strategies to help healthcare institutions enhance the overall effectiveness of their systems, compete successfully in a changing marketplace, and meet their continuing mission to their communities, employees, patients and physicians. Chi principals are recognized experts in specialized healthcare design & construction services, healthcare facility and operations analysis, real estate development and management, economic development incentives, tax exempt financing, zoning & land use, and government relations. www.chi-development.com
 
About The Traina Companies
 
The Traina Companies is a privately held group of companies in real estate development, construction and hospitality, including chi (Central Healthcare Initiatives), and Central Consulting & Contracting specializing in medical/hospital design and construction, among others. The firm is directed by Joseph R. Traina, a real estate investor and developer with 30 years experience, and the former President of Lazard Development Corporation, a wholly owned subsidiary of the investment bank, Lazard Freres & Co. The Traina Companies has managed a property portfolio valued in excess of $2 billion, and has acquired, renovated, leased and/or sold over 10 million square feet of commercial property.  www.Trainaco.com
 
About Central Consulting & Contracting
 
Central Consulting and Contracting provides specialized General Contracting, Construction Management, Design-Build and Project Management Services to leading Healthcare institutions and Medical clients. Central staff are ASHE certified (American Society for Healthcare Engineering of the American Hospital Association) and are nationally recognized as among the most qualified healthcare and hospital contractors. Clients include, among others, New York University Hospital, Lenox Hill Hospital (NY), Cornell University/Weill Medical Center (NY), and implementation of a $250,000,000 Master Facility Plan for St. Peters Hospital (Albany). www.centralconsulting.com
 
About Northeast Hospital Corporation
 
Northeast Health System, Inc is an integrated healthcare system comprised of a network of hospitals, behavioral health, long-term care and human services affiliates offering North Shore residents general and specialized medical care. Northeast Hospital Corporation represents the acute care hospitals - Addison Gilbert Hospital in Gloucester; BayRidge Hospital (psychiatric) in Lynn; and Beverly Hospital in Beverly. There are two outpatient facilities - Beverly Hospital at Danvers, Medical and Day Surgery Center; and Beverly Hospital Cable Center in Ipswich. www.beverlyhospital.org
 
About Jones Lang LaSalle
 
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm  offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse in real estate with more than $46 billion of assets under management. www.joneslanglasalle.com.  One Post Office Square | Boston, Massachusetts 01970 | +1 617 523 8000 | http://www.joneslanglasalle-boston.com.
 
About Perkins Eastman
 
Perkins Eastman is among the top architecture and design firms in the world, with a healthcare practice area that includes academic medical centers, community hospitals, research facilities and other top-ranked institutions. The firm prides itself on creative planning and design that meets client goals, enriches communities, and enhances the human experience. The firm carries out projects throughout North America and around the world. Perkins Eastman provides award-winning planning and design through its domestic offices in New York, NY; Boston, MA; Arlington, VA; Charlotte, NC; Chicago, IL; Oakland, CA; Pittsburgh, PA; and Stamford, CT; and internationally in Dubai, UAE; Guayaquil, Ecuador; Mumbai, India; Shanghai, China; and Toronto, Canada. www.PerkinsEastman.com