Lone Star Funds buys two Palm Beach County senior living complexes for $57M

Sales are part of larger portfolio deal in Florida, Georgia and Texas

Miami /
Jun.June 03, 2021 02:30 PM
Lone Star Funds founder and chair John Grayken, Discovery Senior Living exec Richard Hutchinson and the Palm Beach Gardens location of Discovery Senior Living. (Discovery, Getty)

Lone Star Funds founder and chair John Grayken, Discovery Senior Living exec Richard Hutchinson and the Palm Beach Gardens location of Discovery Senior Living. (Discovery, Getty)

Lone Star Funds bought two senior living complexes in Palm Beach County for a combined $57 million, as part of a 10-property portfolio deal in Florida, Georgia and Texas.

Records show Healthpeak Properties, a Denver-based real estate investment trust, sold all the complexes.

In the biggest deal, an affiliate of Lone Star Funds bought the 138-unit Discovery Village at Palm Beach Gardens at 100 Discovery Way for $31.9 million. The 116,383-square-foot property was built in 2016. Healthpeak, through an affiliate, bought it in 2019 for $27 million.

In the second deal, another Lone Star affiliate bought the 201-unit Veranda Club at 6061 Palmetto Circle North near Boca Raton for $25 million. The 191,356-square-foot property was built in 1987 on 6 acres, records show. Healthpeak’s affiliate bought it in 2006 for $18.7 million.

According to a news release last month, Lone Star Real Estate Fund VI bought the 10-property Discovery Village senior living portfolio from Healthpeak. The value of the deal was not disclosed.

Chicago-based Column Financial issued a $249 million loan for the 10 communities, including $29.4 million for the complex near Boca Raton and $37.6 million for the one in Palm Beach Gardens, records show.

Dallas-based Lone Star, led by founder and chair John Grayken, established its first fund in 1995. Since then, it has organized 21 private equity funds with capital commitments of over $85 billion, according to its website.

Bonita Springs, Florida-based Discovery Senior Living will manage the portfolio under a long-term agreement with Lone Star, according to the release. Discovery Senior Living, founded in 1994 and led by Richard Hutchinson, develops, builds, markets and manages communities, according to the release.

The two South Florida properties offer housekeeping, maintenance and transportation services, as well as educational classes, health and fitness classes, and a concierge, according to their websites. Discovery Village at Palm Beach Gardens offers supervised independent living, senior assistance living and memory care, while Veranda Club has independent and assisted living.

The deals come on the heels of Healthpeak, led by Thomas Herzog, selling three Sonata-branded communities in Palm Beach County in May to Fortress Investment Group for a combined $29.3 million.

Fortress last month also bought a Coconut Creek facility from Healthpeak at 4175 West Sample Road for $11.9 million.

Florida, long a prime choice among retirees, enjoys a hot real estate market for senior living communities, including those that offer independent living and assisted living or memory care, or all three.

In March, Midtown Al Propco, led by Moshe Soskin and Joseph Hirsch, bought Midtown Manor assisted living facility in Hollywood for $9.7 million.





    Related Articles

    arrow_forward_ios
    From left: Eric Witmondt, chief executive officer, Woodmont Properties and Donald Witmondt, chairman, Woodmont Properties (Woodmont Properties, LoopNet)
    Woodmont plans eight warehouses at Palm Beach Park of Commerce
    Woodmont plans eight warehouses at Palm Beach Park of Commerce
    Midtown Capital Partners nabs West Palm business park for $37M
    Midtown Capital Partners nabs West Palm business park for $37M
    Midtown Capital Partners nabs West Palm business park for $37M
    From left: Alex Rodriguez and Barry Sternlicht (Getty Images, Starwood Capital Group, iStock)
    Starwood, A-Rod and partner buy South Florida single-family rentals to add to portfolio
    Starwood, A-Rod and partner buy South Florida single-family rentals to add to portfolio
    11349 Old Harbour Rd, North Palm Beach (Google Maps)
    Chicago real estate honcho buys waterfront home near North Palm Beach for $17M
    Chicago real estate honcho buys waterfront home near North Palm Beach for $17M
    Illustrated Properties taps longtime head of Alabama brokerage as president
    Illustrated Properties taps longtime head of Alabama brokerage as president
    Illustrated Properties taps longtime head of Alabama brokerage as president
    An aerial of Villa Del Ray Golf Course at 5901 Via Delray with 13th Floor Investments’ Arnaud Karsenti and Lennar’s Stuart Miller (Google, 13th Floor, Lennar)
    Lennar pays $19M for golf course near Delray Beach approved for resi community
    Lennar pays $19M for golf course near Delray Beach approved for resi community
    (iStock)
    The lowdown on South Florida’s high end
    The lowdown on South Florida’s high end
    AHS Residential sells a pair of Lake Worth Beach apartment complexes for $82M
    AHS Residential sells a pair of Lake Worth Beach apartment complexes for $82M
    AHS Residential sells a pair of Lake Worth Beach apartment complexes for $82M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...