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L&M Hospital Buys Former Pfizer Building

Howard Street structure purchased for $2.5 million, will be converted to medical offices

has purchased a three-story Howard Street building for $2.5 million and intends to free up space at its main campus by moving some medical offices there.

Michael O’Farrell, spokesman for the hospital, said the acquisition of will allow for operational efficiencies, retention of existing services, and improved access to patient services. He said the hospital will also be able to use the site as a recruiting tool.

“Our goal is to retrofit it to accommodate current and future position needs,” said O’Farrell. “Essentially we’re creating a medical office building for New London-based physicians and creating a multi-specialty practice with on-site ancillary services.”

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O’Farrell said the hospital has not decided which services will move to the building, but that they could include some physician practices and medical offices currently located at the hospital, on Montauk Ave., or in Shaw’s Cove. He said the relocation of these services will free up over 16,000 square feet of space the hospital’s main campus, and that the hospital’s master plan will determine the use for this space.

O’Farrell said the space needs to be renovated to accommodate medical offices, and that the hospital is working with the Renaissance City Development Association to come up with long-term parking solutions as the services expand at the Howard Street site. He said the anticipated occupancy date for the building is early 2014.

The building was formerly leased by Pfizer and had been recently been offered by . According to city records, it was built in 1985, with the latest records showing it was appraised at $4.9 million and assessed at $3.3 million. Stephanie Pious, senior associate at Colliers International of Hartford, served as the broker in the transaction.

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NewLondonSource June 15, 2012 at 11:19 AM
While the sale represents a windfall for Levine, I fear the only revenue the city will see from this transaction is the conveyance tax paid on the sale (~$12,000). As a tax-exempt entity, I can't imagine the hospital suddenly deciding, out of their own goodwill, to pay real and/or personal property tax on the property and its contents. That means a loss of revenue to the city of at least $105,000 a year (what Levine paid last year in property tax). That's before the increase in value that would inevitably come from all the renovations L&M intends to do. Combined with the fact that L&M isn't adding more people to the area, merely just shifting bodies from one area of town to another, there doesn't seem to be a whole bunch of benefit to the city with this transaction. Captain Scott's, on the other hand, might experience an increase in patronage, as might Osmino's and Neon Chicken,
Lisa Beth June 15, 2012 at 12:33 PM
Thank you! That's exactly what I thought when I first heard the news; Great another building/plot of land taken off the tax rolls! That's just what we need around here, isn't it?? (sigh)
Barbara Crocker June 15, 2012 at 02:48 PM
NLDC should charge at least $150K/yr for use of any property for parking, to cover the loss in tax revenue...more if they provide a long term lease of land that would prevent that parcel (parking) from being sold as taxable property. But I'm pretty sure they won't...
lex blacktown June 15, 2012 at 04:41 PM
More untaxable property in the City of New London. The main hospital property between Ocean & Montauk Ave as well as the huge property the hospital owns that they us for storage & employee parking between Ocean Ave & Bank Street are both tax exempt. Also tax exempt is the property the hospital owns adjacent to The Recovery Room restaurant on Ocean Ave. Now this property on Howard Street. MORE THAN HALF of the propert in The City of New London is tax exempt. Something has to be done! The city should be allowed to collect a fee through the hospital from anyone who lives outside the city and uses L & M services. It is unfair that residents of other towns have the benefit & use of the hospital while the taxpayers in New London bear the burden of the hospital's tax exempt status.
Thomas Cornick June 15, 2012 at 04:54 PM
The hospital now owns enough property to build their very own fire department, or they can remit user fees to the city for the use of ours.
Dirk Langeveld June 19, 2012 at 03:13 PM
Just added some information at the end on the broker in this sale.

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