ORLANDO-Southland Group LLC has received a $10.7 million loan on an $8.5 million purchase of four Florida assisted living facilities in Orlando, Melbourne, Lakeland and Ormond Beach. The loan, from a Merrill Lynch affiliate, covers the acquisition, leaseup and marketing costs for properties which are licensed for a total 300 beds.

Genesis Health Ventures of Philadelphia sold the assets for about $28,333 per bed. The Orlando office of Primary Capital Advisors arranged the two-to-three-year bridge loan but wouldn’t disclose the interest rate.

“The interest rate is floating, based on the LIBOR rate,” Todd Cohen, vice president and manager of Primary’s Florida division, tells GlobeSt.com. “The rate was very competitive, given the high leverage loan as a percentage of costs.” The loan-to-value “was not to exceed 80% LTV, but actual LTV was much less, based on the appraisals,” he adds.

The properties range from two years to five years in age with occupancy from 50% to 90%.

“As a result of the sponsorship and management team put in place, this loan required very little equity, which is remarkable, given the type of property,” Cohen says. “However, the lender could see the tremendous upside in purchasing quality properties such as these at a discount-to-market value.”

Norman Huey, managing member of the Southland Group, says the bridge loan “required minimal equity and out-of-pocket costs so that we can concentrate on the management, leaseup and operation of the facilities.”

The properties will be operated as Southeast Suites Assisted Living and will be managed by Proformance Senior Living Management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.