$7 Million Assisted Living Acquisition in Texas

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $7 million assisted living acquisition in Texas is in the sweet spot of specialty senior care lenders, HUD 232 (with longer timeline), and SBA 504 for owner-operators. Texas senior care benefits from favorable demographics, a growing retiree population, and a relatively favorable regulatory environment. Most $7M Texas assisted living acquisitions fund through specialty healthcare lenders or HUD 232 depending on hold horizon and timeline.

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What a $7M Assisted Living Acquisition Capital Stack Looks Like

$7M Texas assisted living acquisitions fund as a single senior loan. The decision is between specialty healthcare lender (faster but shorter term) and HUD 232 (slower but 35-year fully amortizing).

Capital Source Rate / Cost Size / LTV Notes
Specialty healthcare lender 7.95 to 9.50% (5 to 10 yr) $7M / 70 to 75% LTV Faster close (60 to 90 days)
HUD 232 (acquisition) 5.95 to 6.45% (35-year fully amortizing) $7M / 80% LTV Long-term hold; 12 to 24 month timeline
Conventional bank balance sheet 7.85 to 9.50% $7M / 65 to 70% LTV Recourse typical; depository relationship
Bridge debt fund (senior care) 9.50 to 13.00% $7M / 70 to 80% LTC Acquisition + turnaround or value-add

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $7M Assisted Living Acquisition Deal

Typical $7M Texas assisted living acquisition sponsors are mid-market senior care operators with 3 to 20 facilities under management. Sponsor net worth $5M to $30M; liquidity $1M to $5M. Senior care operating experience is essential.

A Real $7M Example

On a $7.4M acquisition of a 78-unit assisted living facility in a Texas suburban market, the buyer was a regional senior care operator with 12 facilities. The acquisition was financed through specialty healthcare lender at 8.45 percent fixed 7-year, 70 percent LTV ($5.2M loan), with sponsor recourse. After 18 months, the sponsor refinanced into HUD 232 at 6.15 percent fixed 35-year fully amortizing at 78 percent LTV ($5.8M), returning $600K and locking in long-term cost of capital.

Anonymized. All deal references protect borrower and lender identity.

$7M Assisted Living Acquisition Texas FAQ

Specialty healthcare lenders price senior care at 200 to 400 basis points wide of HUD 232 reflecting operating risk, regulatory exposure, and shorter loan terms.
Generally no. Assisted living is typically not SBA-eligible due to the active medical/care component. Senior care typically uses HUD 232, specialty healthcare, or conventional financing.
Specialty healthcare lender: 60 to 90 days. HUD 232: 12 to 24 months. Conventional bank: 60 to 90 days.
Favorable demographics with growing retiree population, no state income tax attracting in-migration, relatively favorable regulatory environment, and lower operating cost basis.

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