Searching Lender for Undervalued Real Estate

searcher profile

May 03, 2023

by a searcher from University of Tromsø in Dover, Delaware, USA

I am seeking a lender who'd be interested in providing a $1,1 million loan on an undervalued assisted living portfolio located in southern Georgia. The project is a lease up from about 50% occupancy. It is in a good market, but the operation has been neglected for quite some time and they have not done any sales and marketing for several years. It was recently appraised at $2,4 million. The portfolio is being acquired by a competent team with over 200 years of experience and numerous other similar projects for reference. We estimate to reach 90+% occupancy in###-###-#### equating to an NOI of about $800,000. Looking to close in June-July.

If you are interested please contact me at redacted

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Reply by a searcher
in Oslo, Norway
rooting for you. Are you wanting to buy the real estate mostly because it is undervalued and can give the operating business some stability? sometimes people do not want to buy the real estate because the business really doesnt support the loan payments for the real estate/real estate is a different business.
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Reply by a searcher
from University of Tromsø in Dover, Delaware, USA
The acquisition will be part of a larger roll-up strategy. The 50% occupancy covers the current property debt, but would not support "market rent" for the properties at this level. The spread in value after the lease-up is attractive even if you put a high cap rate on it, but we don't aim to exit until we reach a combined NOI of $10MM+.
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