Fortress Investment Group Pays $64M for Florida Senior Portfolio

The deal is in alignment with the seller's strategy of exiting the senior market.
Sonata Delray Beach. Image courtesy of JLL

An affiliate of Fortress Investment Group LLC has purchased a five-property senior housing portfolio in Southeast Florida for $64 million. According to public records, Healthpeak Properties was the seller.

The disposition is in accordance with the health care REIT’s announcement of divesting up to $4 billion worth of senior housing assets, hence exiting the market. JLL Capital Markets arranged the deal for Healthpeak and is in charge of securing acquisition financing for the buyer.

Sonata Senior Living has been the operator for all five communities for more than three years and will continue its management role going forward. The former owner invested $13 million in capital improvements in the past four years in the 444-unit portfolio, which is spread throughout Delray Beach, Boynton Beach, Boca Raton, Coconut Creek and Vero Beach.

Japanese multinational conglomerate SoftBank Group acquired Fortress in 2017, for $3.3 billion. One of the company’s most recent transactions was the purchase of a defaulted mortgage on an 88-story condo tower in Manhattan. BH3 sold the non-performing debt for $230 million.

The Sonata Portfolio

Out of the five-asset ensemble, Sonata Vero Beach has the most units, 104, followed by the 94-unit Sonata Coconut Creek. Located at 4175 W. Sample Road, the Coconut Creek community commanded $11.9 million, according to South Florida Business Journal. Completed in 1999, the property last traded in 2002, for $9.7 million.

Healthpeak pocketed $8.4 million for the 74-unit Sonata Boca Raton at 9591 Yamato Road, while the 92-unit community at 2400 S. Congress Ave. in Boynton Beach sold for $11.4 million. Comprising 80 units at 8020 W. Atlantic Ave., Sonata Delray Beach traded for $9.5 million.

The JLL team arranging the deal for the seller included Managing Directors Mike Garbers and Cody Tremper.