Leo Friedman’s Controversial Acquisition of Abbey Delray: A $30 Million Investment in Senior Living

In a significant move within the senior living sector, controversial tycoon Leo Friedman has acquired the Abbey Delray facility in Delray Beach, Florida, for a staggering $30 million. This transaction, finalized between Friedman’s New York-based Citadel Care Centers and Dallas-based Lifespace Communities, highlights the ongoing evolution of senior living facilities in a state renowned for its appeal to retirees.

The Abbey Delray Facility: A Comprehensive Overview

Located at 2000 Lowson Boulevard, Abbey Delray spans an impressive 25.7 acres and comprises a mix of residential and care options. Originally completed in 1979 and 1980, the facility features six three-story buildings and nine one-story buildings. It offers a total of 472 units, including:

• 327-bed independent living center
• 48-bed assisted living center
• 120-bed nursing care center
• 30-bed memory care facility

This diverse range of accommodations allows seniors to maintain a degree of autonomy while receiving professional assistance as needed. The memory care facility, in particular, caters to individuals experiencing memory loss, providing specialized support tailored to their unique needs.

Financing the Acquisition

To facilitate this substantial purchase, Citadel Care Centers secured a $42 million loan from Metropolitan Commercial Bank, along with an additional $8.3 million in mezzanine financing from Northwind Group. This financial backing underscores the confidence investors have in the senior living market, particularly in regions like South Florida, where demand continues to grow.

Citadel Care Centers: A Controversial Background

Founded and led by Leo Friedman, Citadel Care Centers operates several senior living properties, primarily in New York. These include Bronx Gardens, Hudson Pointe at Riverdale Center, Riverdale Rehab and Nursing, and The Plaza Rehab and Nursing Center. However, the company has faced scrutiny in the past. In 2022, an affiliate of Citadel, The Plaza Citadel Consulting Group, settled a civil healthcare fraud lawsuit. The allegations involved switching residents’ Medicare coverage types without proper consent to maximize federal payouts. The settlement required Citadel to pay nearly $7.9 million, raising concerns about ethical practices within the organization.

The Appeal of South Florida’s Senior Living Market

South Florida has long been a magnet for retirees, making it an attractive location for senior living facilities. The region’s warm climate, recreational opportunities, and vibrant communities ensure that these properties remain well-leased. Recent transactions in the area further illustrate this trend. For instance, Welltower recently acquired the 220-bed Oakmonte Village of Davie for $34.3 million, while Focus Healthcare Partners purchased the 377-unit Mariposa assisted living facility for $63.8 million.

Future Developments in Senior Living

The demand for senior living facilities in South Florida shows no signs of slowing down. Developers are actively planning new projects to meet the needs of an aging population. For example, a developer has proposed a 245-unit senior living facility in Weston, and Miami Jewish Health is planning a 192-unit complex in Miami’s Buena Vista. These developments reflect a growing recognition of the importance of quality senior care and the potential for investment in this sector.

Conclusion

Leo Friedman’s acquisition of Abbey Delray marks a pivotal moment in the senior living landscape of South Florida. While the investment raises questions about the ethical practices of Citadel Care Centers, it also highlights the ongoing demand for quality senior living options in a region that continues to attract retirees. As the market evolves, stakeholders must navigate the complexities of care, ethics, and investment to ensure that the needs of seniors are met with integrity and compassion.