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Mercy Hospital sells State Street building, gets OK for $84M project near Fore River

NewHeight Redfern plans to develop a mixed-use project including residential and commercial components, according to a release.

PORTLAND, Maine — Northern Light Mercy Hospital announced Thursday that it has closed on the sale of its State Street property to a local development group, and will break ground this spring on its new campus on the Fore River.

The hospital was sold to NewHeight Redfern, a joint venture between local development firms NewHeight Group and Redfern Properties, for an undisclosed price.

NewHeight Redfern plans to develop a mixed-use project including residential and commercial components, according to a release.

The hospital plans to lease back and remain at the State Street facility until its expanded campus on the Fore River is complete, which officials expect in 2022

The city's planning board on Wednesday approved the hospital's $83.8 million expansion, to include a new emergency room, ambulatory surgery center and other hospital and medical office space, as well as 95 additional surface parking spaces, the Portland Press Herald reported.

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“This local development group knows Portland well, and they are committed to engaging with the community in a meaningful way,” Mercy president Charlie Therrien said in the statement. “This sale and campus consolidation will position us for the future and ensure that we are able to carry on the mission of the Sisters of Mercy that began in Portland just over a century ago.”

Redfern Properties has developed apartment buildings including the 39-unit West End Place at Pine and Brackett streets and the 139-apartment Hiawatha on Congress Street, as well as properties in East Bayside, Jonathan Culley, principal of Redfern, said Thursday.

According to the release, the group has developed housing for rent and for sale at all income levels.

Representatives for NewHeight Group did not respond to a request for comment on Thursday.

In a statement, Erin Cooperrider of NewHeight Group said officials spoke to area neighborhood organizations during the sale process to learn their priorities and plans to work with them again in the future.

The development group is working with Community Housing of Maine and the Portland Housing Authority.

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