Welltower Buys Palm Beach County Assisted Living Facility for $87M

Welltower, a real estate investment trust dedicated to senior living, has paid $87.2 million for an assisted living facility in Lake Worth, Fla., property records show.

The 366,036-square-foot property, called The Arbor at Lake Worth, includes 377 units across 22 acres at 9130 Hypoluxo Road, west of Florida’s Turnpike, near Everglades National Park. The campus, built in 2017, includes a 35,585-square-foot recreation center, a 3,180-square-foot auditorium, and a 44,627-square-foot nursing home. 

While it remains unclear whether the $87.2 million price includes the business operations or solely the real estate, the latest sale represents an increase of more than 36 percent compared to the property’s previous transaction just two years ago. The seller, Chicago-based Focus Healthcare Partners, acquired the asset for $64 million. 

The purchase comes a month after Toledo, Ohio-based Welltower secured a $6.25 billion revolving credit facility. The company owns about 2,500 senior and wellness housing communities across the U.S., the United Kingdom and Canada. Last year, the firm purchased a 141-unit community in Aventura for $47 million. 

As Welltower drives ahead into the assisted living asset class, other major institutions have struggled to turn a profit, including Blackstone. Last year, the private equity giant off its senior housing portfolio, which included South Florida properties, at a loss, The Wall Street Journal reported. 

Representatives for Welltower and Focus Healthcare Partners did not immediately respond to requests for comment.

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