Another close of escrow date for the sale of the Fallbrook Hospital building to Crestwood Behavioral Health, Inc. has come and gone without the sale being completed.
The Fallbrook Regional Health District (FRHD) board voted to sell the vacant building located at 624 East Elder to mental health provider Crestwood at its May 10 meeting and then ratified the sale at a special meeting July 28 to facilitate a scheduled close of escrow date of July 31.
Escrow failed to close July 31 because FRHD was dealing with the County of San Diego on a couple of issues regarding the property – a lot line adjustment and a 1989 lien agreement that current board members only recently discovered. Those issues prompted the board at its Aug. 9 meeting to vote to extend close of escrow to Aug. 31.
FRHD attorney Blaise Jackson, contacted at his office Sept. 1, confirmed a report that escrow still hadn’t closed.
“That is correct but the parties are in discussions about a short (escrow) extension,” said Jackson. “Buyer and seller are talking about it.”
Jackson said the reason for the latest delay in closing escrow is Crestwood and FRHD are both working out issues.
“The buyer approached us needing to finalize some issues respecting their plans for modifications as well as finalizing financing,” said Jackson. “And on our side one of the issues that we have with the county needs to be addressed – that ’89 lien agreement. At this point we’re down to how the language goes on the lien release, but it just isn’t done yet.”
When asked how much longer close of escrow would be extended out, Jackson replied, “At this point I’d be speculating and I wouldn’t want to cause issues on the discussions, but they are ongoing.”