Private equity giant Fortress Investment Group (NYSE: FIG) has increased its investments in senior living with the recent $64 million acquisition of a five-property portfolio from real estate investment trust Healthpeak (NYSE: PEAK).
The deal was announced by Healthpeak in conjunction with its Q1 2021 earnings results on May 4, but the buyer was not disclosed at that time.
Based in New York City, Fortress has about $53 billion in assets under management. The firm owns Winter Park, Florida-based Holiday Retirement, which operates a portfolio of about 260 independent living communities.
The five former Healthpeak properties will continue to be managed by Orlando-based developer and operator Sonata Senior Living. Overall, Sonata’s portfolio consists of 11 operational communities and two under development, all in Florida, according to the company’s website.
“We believe the portfolio is well positioned to benefit from the strong demographic trends in South Florida particularly from the accelerating trend of migration of seniors to Palm Beach county,” Fortress Managing Director Pete Stone said in a press release issued Wednesday.
A JLL Capital Markets team led by Managing Directors Mike Garbers and Cody Tremper represented the seller and is working on the buyer’s behalf to secure acquisition financing, the global capital solutions firm announced.
The Sonata portfolio consists of 444 units, with the communities located in Delray Beach, Boynton Beach, Boca Raton, Coconut Creek and Vero Beach.
In the last four years, the communities have received more than $13 million in CapEx, according to JLL, including upgrades to exteriors and furnishings, new flooring, roofing repair, converting assisted living to memory care, and generators to meet Florida regulations.
The portfolio traded as part of Healthpeak’s exit from rental senior housing, which has seen the REIT divest about $4 billion in assets.
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