A vacant, distressed drug treatment facility near Lake Worth Beach sold for $15.6 million, and the new landlord has secured Banyan Treatment Centers to move into the building.
Blue Cane Properties, a Delaware entity, bought the 109-bed rehabilitation complex at 4140 Lake Worth Road in Palm Springs, court records show. The buyer was represented by Thomas Zeichman and Jeffrey Lynne, partners with the Boca Raton-based law firm Beighley, Myrick, Udell, Lynne + Zeichman, according to a press release.
In February, Blue Cane submitted a stalking horse bid for $15 million, and upped its offer by $600,000 a month later when the deadline for offers expired. No other bids were received, court records show.
The deal allowed the sellers, three affiliates of Brooklyn-based Coal Capital Group, to end a foreclosure lawsuit. Lapis Advisors, as an agent for lender HC Global Fund Services, agreed to the disposition of the property at a price below the $17.3 million mortgage debt that Coal Capital’s affiliates allegedly defaulted on last year, court records show.
Coal Capital bought the 3-acre property for $905,000 in 2015 when the land was vacant. A year later, the firm developed a pair of two-story buildings and one three-story building, records show.
On June 5, Palm Beach County Circuit Court Judge G. Joseph Curley Jr. approved the settlement and the sales agreement. After the lender is paid off, one of the Coal Capital affiliates will receive $1.4 million and the other two entities will receive $500,000 to $600,000, which will be determined after expenses to the receiver appointed to manage the affiliates are paid, Curley’s order states.
The Coal Capital affiliates ran into trouble when Retreat Behavioral Health, a national drug rehabilitation company, went into a tailspin last year following the deaths of two top executives, including CEO Peter Schorr, published reports state. Retreat Behavioral Health shuttered in June of last year.
Banyan Treatment Centers, led by CEO John Sory, signed a long-term lease, plans to upgrade the facility with interior renovations and obtain a new operating license, the release states. The firm expects to reopen in roughly four months.
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