Following the acquisition of RoseWood Village at Greenbrier and RoseWood Village at Hollymead in Charlottesville, Virginia, Fortress Investment Group recently announced the divestment of three seniors housing assets in Florida (two) and Arizona.
First, funds managed by affiliates of Fortress sold the Sonata Boca Raton and Sonata Vero Beach in Boca Raton and Vero Beach, Florida, respectively, to a public REIT. The two properties comprise almost 180 independent living, assisted living and managed care units in a range of cottages and apartment buildings. Both properties feature on-site amenities including a full-service restaurant, outdoor pool, beauty salon, fitness center, art studio, library, games room, gardens and full-time concierge.
Fortress acquired the properties in April 2021 during the peak of the pandemic from a REIT that was divesting its seniors housing assets. Fortress led more than $1 million of investment across the properties throughout the years, improving interiors, refreshing building exteriors, and upgrading mechanical and life safety systems. The physical improvements were implemented alongside operational enhancements, which drove occupancy across the two properties from 75% to 97%. Financial performance of the properties significantly improved, with net operating income growing by nearly 200% and margins approximately doubling.
Fortress also sold the Inspira Arrowhead in Glendale, Arizona, to a private investor. Fortress funds acquired the community in April 2024, which comprises 165 independent living, assisted living and managed care units, with on-site dining, salon and barbershop, fitness center, swimming pool, game rooms and library, movie theater and gardens. During its 18-month ownership, Fortress drove occupancy from 89% to 94% and improved net operating income by 35%.
Fortress’ real estate strategy focuses on situational, value-add distressed assets. Fortress funds have acquired 17 communities totaling over 2,500 units since 2021, with three additional property acquisitions expected to close in the coming months.
JLL Capital Markets represented Fortress in the sale of all three assets. Agewell Solvere Living will continue to manage both Sonata properties, and Cogir will continue to manage Inspira Arrowhead.
