Fortress Buys Assisted Living Center in Delray Beach, Fla.

Fortress Investment Group paid at least $25.8 million for an assisted living facility in Delray Beach, Fla.

The 126,918-square-foot property sits adjacent to South Military Trail at 4840 West Atlantic Avenue, about two miles west of Interstate 95. The 4.2-acre asset, constructed in 2018, houses 118 beds. 

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The transaction comes out to about $218,220 per bed, though the total sale price is likely higher to include for the facility’s furniture and business operation. 

New York-based Fortress Investment Group assumed the seller’s loan from Atlantic Union Bank with $22.2 million in outstanding debt and increased it by $3 million. The $25.3 million financing is scheduled to mature in 2030. 

The seller, an entity tied to Capital Health Group‘s Kenneth Assiran, purchased the development parcel for just under $4 million in 2015. 

There’s been an uptick in the sales of nursing homes and assisted living facilities across South Florida as the state’s senior population is expected to grow by 2.2 million by 2040, according to state estimates.

Recent transactions include Welltower’s $49 million acquisition of a 120-unit in Broward County this week and Artemis Real Estate Partners’ $140 million purchase of a 7.2-acre asset in August. 

Assiran could not be reached for comment, while a spokesperson for Fortress Investment Group did not immediately respond to a request for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com. 

Source: commercialobserver.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.