LAKE WALES and HAINES CITY, Fla. — Lument has provided a $6.1 million bridge loan to facilitate the acquisition of two assisted living communities in Florida totaling 90 units.
Innovation Senior Living, a middle-market provider founded in 2016, acquired Savannah Court of Lake Wales, a 45-bed community, and Savannah Court of Haines City, a 45-bed community. The two properties are approximately 15 miles apart in small cities south of Orlando and east of Tampa.
Casey Moore, Conner Girdley and Chris Mauger led the transaction for Lument. Lument’s M&A team, led by Laca Wong-Hammond and Dominic Porretta, represented the seller in the acquisition.
Following the acquisition, Innovation Senior Living plans to add 15 licensed beds to each community, grow overall census, and complete renovations such as replacing the roofs and installing new lighting. Both communities serve low-income seniors via reimbursements from Medicaid waivers. The additional licensed beds will allow the communities to accept more Medicaid waiver residents into double occupancy rooms, increasing revenue without adding units.
The two communities were acquired with a single loan with a cross-pool structure, which offers the benefits of maximum debt allocation flexibility on future HUD loans and the ability to spread risk across two facilities. It is expected that HUD will provide the permanent debt structure.
The loan features a fixed rate and two-year term, with interest-only payments for the length of the term.