Southland Buys Four Senior Housing Assets for $8.5M

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.