Grandpa to be Lionel Richie is so excited about his daughter Nicole’s upcoming wedding and baby boy arrival with rocker Joel Madden that he has purchased a $2 Million Century City townhome for the new family.

“Lionel was overjoyed when Nicole told him that she was pregnant, and he’s been searching for the perfect baby gift,” an insider tells the National Enquirer. “And boy did he find a whopper!”

The three-bedroom, three-bath enclave is the former home of “NYPD Blue” star, Dennis Franz, and his wife, Joanie. “Lionel was going to wait and surprise the couple with the home closer to the birth date,” continued the insider. “But he was so deeply touched by the way Nicole spoke so lovingly of him during the interview (with Diane Sawyer), that he sprang the gift on them just hours after seeing the TV appearance.”

“They were overwhelmed.” “All three of them cried happy tears over the phone. Lionel has vowed that even though he wasn’t around much as a parent, he’s going to be a dynamite granddaddy.”