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Mercy Health sells former Muskegon General Hospital property

Mercy Health listed the property for sale in 2018, the purchase price was not disclosed by Mercy Health or Phoenix Reclamation.

MUSKEGON, Mich. — Earlier this year Mercy Health sold the Muskegon General Campus property, located at 1700 Oak Ave, to Phoenix Reclamation and it's parent company Melching Demolition.

The nearly 30-acres including the former hospital tower, several office buildings, large parking lots and 10-acres of wooded land were included in the sale. Mercy Health listed the property for sale in 2018, the purchase price was not disclosed by Mercy Health or Phoenix Reclamation.

Future uses for the property are being determined, it's believed any possible development of the site will be for a variety of mixed use projects.

Phoenix Reclamation, Melching Demolition, and the City of Muskegon are working together to develop plans for the site.

The City of Muskegon's Economic Development Director Jake Eckholm tells 13 ON YOUR SIDE the sale of the property is a good sign for Muskegon signaling developers are beginning to look for opportunities outside of the city's downtown.

"The strategy from the beginning as far as Muskegon's revitalization has been to start in the core of the urban area and move outward, and now we're in that outward moving phase," said Eckholm. "This is the eastern most border of the city, that's exciting to see there's market interest over there where people are acquiring vacancies and starting redevelopment. So I'm excited about the potential housing uses, and I'm excited about the potential office and commercial uses, I think the sky is kind of the limit for that acreage."

Redevelopment will most likely mean removing the hospital tower late in 2021 or in the first half of 2022.

Mercy Health also has plans to demo the main portion of the former Hackley Hospital. That effort could begin as early as this summer. The property will be the site of a new Muskegon Public Schools Middle School.

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