‘Significant upgrades, or full demolition, will be required to meet today’s safety and building standards,’ said official
The former Markdale Hospital building remains on the real estate market.
The agreement Affordable Housing in Grey Highlands (AHIGH) made to purchase the old hospital from Brightshores Health System has expired.
On April 9, AHIGH released a statement noting that the agreement had expired after issues with the building were detected during the due diligence phase of the agreement.
“In performing due diligence studies on the site, namely a ‘designated substance survey’ and Phase One environmental site assessment, AHIGH identified a concern,” the statement noted.
“In March, both parties agreed to extend the due diligence period by 30 days to April 6, 2026. With the concern unresolved, AHIGH proposed a further 30-day extension. Brightshores did not agree to this further extension, hence the agreement expired.”
In the statement, the affordable housing group said it continues to have interest in purchasing the property.
“AHIGH remains interested in negotiating with Brightshores to reach a satisfactory agreement of purchase and sale of the property,” the statement said.
On April 10, Brightshores issued an update on its website about the former hospital property situation. The hospital corporation continues to have plans to sell the property.
“We remain committed to selling the former Markdale Hospital property on Isla Street ‘as is.’ Proceeds will be directed toward critical health infrastructure to strengthen care for the communities we serve,” said Lisa Pires, vice president, finance and development, chief financial officer for Brightshores, in the statement. “Real estate transactions are subject to change, and unfortunately a recent agreement was unable to move forward.”
AHIGH was interested in purchasing the property, located just outside of downtown Markdale, and pursuing an affordable housing development on the site. The former hospital building has been vacant since hospital operations were relocated to the new hospital located on Highway 10 behind the Grey Gables complex in Markdale.
“Managing an unused property comes with real costs and risks, including security concerns, liability for trespassing and potential injury on-site. Significant upgrades, or full demolition, will be required to meet today’s safety and building standards,” Pires said in the update.