North Charleston completed its sale of the former Naval Hospital at Rivers and McMillan avenues on Friday, the city and the buyer Chicora Gardens Holdings LLC confirmed.
The nearly 400,000-square-foot, 10-story former hospital is the tallest building in North Charleston, and part of a key city effort to redevelop the struggling south end of the city. North Charleston received an initial $3 million payment for the property Friday, with another $2 million due at the end of September.
The city bought the 24-acre hospital property from the federal government for $2 million in late 2012.
"Chicora looks forward to being a long-term partner in this community and helping contribute to the revitalization of this area," said Doug Durbano, the Utah-based manager of Chicora Gardens Holdings.
New York developer Donald Trump Jr. is a minority investor in the project.
The company said it will "now focus on leasing the space while continuing the building up-fit and amenity development with the goal of creating a Health & Social Services Hub to better serve the community."
The $5 million deal includes up to $1 million in incentives to attract a major grocery store to either the hospital property or the vacant site of the former Shipwatch Square shopping center across the street. Chicora Gardens Holdings LLC has until Sept. 30 to decide if it will buy the 18-acre shopping center site for an additional $4.2 million.
Reach David Slade at 937-5552