GAMG moves forward with $92 million Rhode Island hospital redevelopment

Global Asset Management Group Inc. (OTC: GAMG) announced progress on its acquisition and redevelopment of a former hospital campus in Pawtucket, Rhode Island, following approval of deed restriction amendments that allow the project to proceed as planned.

The company is redeveloping the former Memorial Hospital campus at 111 Brewster Street, which consists of approximately 386,404 square feet on 7.68 acres. GAMG expects the project to represent a $92 million stabilized asset value upon completion.

The redevelopment costs include a $12 million acquisition cost and $45 million in construction and redevelopment expenses, plus additional soft costs, financing costs and contingency reserves. The company projects the completed project will generate approximately $650,000 per month in stabilized cash flow, or $7.8 million annually.

An independent appraisal by Standard Valuation Services established a market value of approximately $24 million for the property in its current condition.

The redevelopment plans include approximately 200 residential units with affordable housing components, market-rate multifamily housing, and dedicated veteran housing allocations. The project will also feature community support services, retail amenities, and healthcare-related uses.

GAMG also announced it has initiated the process to uplist its common stock to the OTCQB Venture Market.

"This project represents far more than a real estate redevelopment. We believe this is an opportunity to create meaningful long-term impact for the City of Pawtucket and for an underserved veteran and affordable housing community," said Richard Balles, chief executive officer of GAMG.

The information is based on a company press release statement.

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