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Fortress buys three Palm Beach County assisted living facilities for $30M

Fortress also bought a senior center in Coconut Creek last week for $12M

Healthpeak Properties CEO Thomas Herzog. (Healthpeak, Sonata)
Healthpeak Properties CEO Thomas Herzog. (Healthpeak, Sonata)

Healthpeak Properties sold three Palm Beach County facilities that offer assisted, independent and memory care living for a combined $29.3 million.

Deeds show New York-based global investment manager Fortress Investment Group bought the three Sonata-branded centers.

In the biggest deal, the 101-unit facility at 2400 South Congress Avenue sold for $11.4 million. It was built in 1999 on 4 acres and last traded in 2003 for $6.5 million, records show.

Healthpeak also sold the 94-unit facility at 15020 East Tranquillity Lake Drive near Delray Beach for $9.5 million. It was built in 2000 on 4.6 acres and last traded in 2002 for $5.8 million.

The smallest deal was the $8.4 million sale of the 88-unit center at 9591 Yamato Road near Boca Raton. It was built in 2000 on 4 acres and last traded in 2001 for $9.7 million.

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The deals come on the heels of Fortress buying a Sonata facility at 4175 West Sample Road in Coconut Creek from Denver-based Healthpeak Properties last week for $11.9 million.

It is not clear if the sales are part of a bigger portfolio deal spanning other properties in or outside Florida. Fortress and Healthpeak did not immediately return requests for comment.

Healthpeak, a real estate investment trust led by Thomas Herzog, late last year started selling its $4 billion stable of senior housing properties as part of a portfolio reevaluation, according to McKnight’s Senior Living news website.

Florida, long a prime choice among retirees, enjoys a hot real estate market for both assisted living facilities — which generally provide on-site nurses and other assistance — and senior housing communities, which are restricted to residents over a certain age.

This month, Alliance Residential Company scored a $45.7 million construction loan for a 187-unit apartment complex for seniors west of Delray Beach. And Midtown Al Propco, led by Moshe Soskin and Joseph Hirsch, bought Midtown Manor assisted living facility for $9.7 million in March.

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