Erickson Senior Living paid $53.5 million for a development site at the Agricultural Reserve, where it plans to build a large facility amid the firm’s nationwide expansion.
The Baltimore, Maryland-based firm bought the 92.5-acre tract at 8344 Boynton Beach Boulevard in unincorporated Palm Beach County from the William Mazzoni Revocable Trust, led by Patricia Mazzoni and Thomas Smith as co-trustees, according to records and real estate database Vizzda.
Led by CEO R. Alan Butler, Erickson applied for a rezoning of its site in 2022 to allow congregate living facilities. Commissioners preliminarily greenlit the request that year, though the application still needs final approval.
Erickson proposes a 1,262-bed project, with 1,192 congregate living facility beds and 70 nursing facility beds, according to Vizzda. The project would consist of three three-story buildings and three four-story buildings; a 762-space garage and a 335-space parking lot; and a 2.2-acre recreational area.
The Agricultural Reserve is a roughly 22,000-acre swath of land west of Boca Raton and east of Loxahatchee Wildlife Refuge. Development at the reserve is controversial due to some environmentalists’ opposition over concerns about ecological and farmland impacts. The county already has approved several large projects there.
Senior living facility development and investment sales have been bolstered by demand from retirees. The oldest baby boomers, or those born from 1946 to 1964, are turning 65 years old at a rate of about 10,000 per day, according to a U.S. Census Bureau report. By 2030, all baby boomers are expected to have turned 65.
Some facilities, such as congregate living, nursing homes and assisted-living facilities, offer health care services and daily assistance, while independent living facilities target retirees in good health.
Erickson is investing $4 billion in the development and upgrades of senior living facilities across the U.S. over the next four years, the Baltimore Business Journal has reported. The spending spree, which is privately financed, includes the Agricultural Preserve project.
Erickson has over 30,000 residents in its communities and plans to add 1,000 continuing care and independent living units this year, according to its website.
Others betting on the asset class are developer Terry Salzman, who won approval this month for a six-story, 245-unit senior living facility at 357 Racquet Club Road in Weston; and Pointe Group Care and Allaire Health Services, which dropped $30.9 million for Las Palmas Senior Living at 5300 West 16th Avenue and the adjacent Susanna Wesley Health Center at 5345 West 18th Avenue in Hialeah last year.
In January, the Portopiccolo Group family office purchased the one-story, 120-bed Regents Park at Sunrise assisted-living facility at 9701-9711 West Oakland Park Boulevard in Sunrise for $26.7 million.