New York-based Fortress Investment Group has acquired an assisted living facility in Delray Beach in the US state of Florida. The purchase price for the property amounts to at least $25.8 million. The asset at 4840 West Atlantic Avenue is situated directly on South Military Trail and roughly two miles west of Interstate 95.
Completed in 2018, the facility encompasses 126,918 square feet of floor space on a plot of around 4.2 acres and offers 118 beds. Based purely on the number of beds, the documented amount equates to a mathematical price of around $218,220 per bed. Because movable fixtures, fittings and ongoing business operations are frequently accounted for separately, the actual total volume of the transaction is likely to exceed the figure recorded in the land registry.
Financing structure and history of the property
As part of the acquisition, Fortress assumed an existing loan from Atlantic Union Bank with an outstanding balance of $22.2 million and increased it by $3 million. The total liability of $25.3 million matures in 2030.
The seller of the property is an entity linked to Kenneth Assiran of Capital Health Group. The firm acquired the development site in 2015 for just under $4 million and subsequently constructed the property. Kenneth Assiran could not be reached for comment, whilst a company spokesperson for Fortress initially left an inquiry unanswered.
Growing momentum in South Florida's care sector
The market for healthcare and senior living real estate in South Florida is currently experiencing a noticeable revival. State forecasts project that the older population in the state will increase by around 2.2 million people by 2040, steadily driving demand for corresponding care places.
The transaction joins a string of recent major deals. Welltower recently secured a 120-unit facility in Broward County for $49 million, whilst Artemis Real Estate Partners acquired a 7.2-acre healthcare site for $140 million in August.
