Silverstone sold a senior living facility in Palm Beach County for $23.5 million, as part of a three-way deed in lieu of foreclosure deal.
The Dallas-based firm sold the two-story, 136-unit building at 8785 Lake Worth Road in an unincorporated area of the county to Walton Street Capital, according to records and real estate database Vizzda. The facility was rebranded Alamar Senior Living from HarborChase.
Generally, deed in lieu of foreclosure means an owner hands the title of a property to its lender. This avoids a foreclosure action, and the owner is released from payment commitments.
The Alamar deal worked differently. Silverstone used the proceeds from the sale to Walton to pay off the property’s outstanding $23.5 million loan, which included interest, to lender MidCap Financial, according to Vizzda. Records show that after the sale, MidCap released Silverstone from its loan obligation.
Silverstone developed the senior living facility in 2018 on an 11.8-acre site, according to records. The firm borrowed $20.8 million from BBVA USA in 2016. In 2021, the loan was reassigned from BBVA to MidCap, which boosted the debt to $25 million. MidCap served as an agent for a group of lenders, records show.
Chicago-based Walton took out a new $17.7 million loan for its purchase from Bethesda, Maryland-based MidCap, according to Vizzda.
Silverstone is led by co-CEOs Denny Alberts and Bobby Zeiller. Walton is led by Eric Mogentale and Jeffrey Quicksilver, who are co-founders and managing principals.
The Alamar deed in lieu of foreclosure shows that South Florida landlords aren’t immune to financial woes. Over the past four years, market boosters have touted the tri-county region as a haven due to hefty leasing and investment activity, as well as rent growth. But elevated interest rates, skyrocketing insurance and other headwinds have caught up to South Florida.
This month, lender Värde Partners filed a foreclosure suit against San Antonio, Texas-based Affinius Capital over a $77.4 million loan, including interest and late fees, for the two-building Columbus Center office complex at 1 Alhambra Plaza in Coral Gables. That came on the heels of Woodforest National Bank suing to foreclose on a $10.8 million revolving line of credit and a $1.8 million loan on a Hollywood warehouse at 1980 Grant Street. The borrowers are entities managed by David Frank.
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